Rebranded International Bank Absa Kenya has been ordered by the court to pay an elderly couple Sh234million as compensation for the fraudulent sale of their 127,000 shares held in 11 companies.
In a judgement issued by Justice Alfred Mabeya, the lender previously known as Barclays Bank of Kenya, was directed to pay Stanley Mwangi Gachugu and Bilha Waruguru Mwangi Sh234,188,156 being the prevailing market value of the 127,797 shares.
The couple trades as Vinco Footwear and ventured into entrepreneurship in 1958 with a capital of Sh10 and over time invested in shares for their old age.
Mabeya issued the order in enforcing a judgment issued on October 4, 2019 where the court found the shares had been fraudulently sold by the lender and directed for valuation of the same.
The couple stated that in 1991 when they operated a current business account with the lender at its Moi Avenue branch, they had deposited their share certificates for various companies in the bank as security for loans.
Through the account, they obtained overdraft facilities in 1990 and 1991 and deposited with the defendant share certificates and title deeds as security for the liabilities.
Those share certificate were for Kenya Breweries Ltd, Brooke Bond Kenya, EAP&L Company Ltd, ICDC Investments, Standard Chartered Bank, Kenya Finance Corporation, Rift Valley Bottlers Ltd and ICDC shares.
Others were for B.A.T Ltd, Barclays Bank and KFC.
In 1998, after realising they were not receiving dividends for their shares, Gachugu went to the bank and was informed that the bank only had only one share certificate in its custody.
He later made a complaint with the Capital markets Authority which contacted the lender.
The court found the couple had proved its case against the lender.