Firm sue Absa Bank for Sh1.5billion in data breach row
A transit firm has sued Absa Bank Kenya Plc. for allegedly disclosing private information to third parties in connection with an account dispute and is seeking a Sh1.5 billion in compensation.
In a lawsuit filed before the Commercial and Admiralty Division of the High Court in Mombasa county, New Mega Africa Ltd. accused the lender of financial sabotage and unconsented disclosure of customer financial statements with third parties.
From Kenya to Tororo in Uganda and the surrounding area, the company ships clinker and cement products using the very route as its main source of income.
“The relationship was really robust and as a result, the business flourished exponentially,” Director of the company, David Abai said.
Court records reveal that the company’s principal client increased the number of trucks it had under a lease-to-town agreement because of its strong financial performance.
The facility it had with the bank had increased to Sh72 million by the time Covid-19 struck.
However, the firm claimed through Kirui Kamwibua and Company Advocates that its primary client changed the payment time from the initial seven days to 14 days to a period between 45 and 60 days due to the effects of Covid-19.
The company claims that as a result of these modifications, it requested an additional facility worth Sh5million to protect it from fuel demands brought on by the lengthening of the payment period.
Abai stated that the bank, its employees, or its agents promised to help the firm to cover up for the period rise, but it failed to do so notwithstanding the securities it held over the firm.
