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Originally published by Kenyanstop
September 2, 2026
1h ago
Court Rules on Banks’ Liability When Customers Lose Money to Fraud
A court has explained when banks may be required to compensate customers after fraudsters steal money from their accounts...
✨ Key Highlights
A Nairobi court has ruled that banks can be held liable for customer losses due to weak digital verification systems following a case where a customer was defrauded of Ksh511,000.
- A bank was ordered to refund Ksh511,000 to a customer whose account was accessed using stolen identification and phone details.
- The ruling came from the Milimani Small Claims Court.
- Fraudsters created a new digital banking profile on the customer's account, previously operated offline, leading to unauthorized transactions.
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