Absa Bank Kenya is facing renewed scrutiny after being accused in court of unlawfully sharing a customer’s confidential financial information with third parties, claims that have sparked fresh debate over data privacy and the security of customer records held by financial institutions.
The allegations are contained in an ongoing court case filed by New Mega Africa Limited, a Mombasa-based transport company, which is seeking Sh1.51 billion in damages over an alleged breach of confidentiality.
According to court documents, the company claims that its confidential financial statements were printed and disclosed to third parties without its knowledge or consent. The transport firm argues that the alleged disclosure triggered devastating financial consequences, including the cancellation of insurance cover, pressure from creditors, loss of financing facilities, and significant damage to its business reputation.
The lawsuit, filed in 2022, initially resulted in a default judgment after Absa failed to file its defence within the prescribed time. The court later assessed damages at Sh1,512,533,679 after finding that the bank had breached its contractual and fiduciary obligations to its customer.
However, that judgment was subsequently set aside, allowing Absa to defend itself during a full hearing. The bank has strongly denied the allegations and maintains that no confidential customer information was leaked.
Absa has also disputed claims that one of its former employees was responsible for the alleged disclosure, arguing that the individual did not have the necessary system access to obtain or release the customer’s financial records.
The dispute has since evolved into one of Kenya’s most closely watched data privacy cases involving a commercial bank. In January 2025, the court allowed a former Absa employee to testify, a development expected to play a key role in determining whether confidential information was unlawfully disclosed.
The case has also highlighted broader concerns about the challenges customers face when attempting to prove an alleged data breach. Much of the technical evidence, including system logs and access records, is typically held by the institution accused of the breach, making independent verification difficult.
While the plaintiff insists the alleged disclosure crippled its business and caused losses running into billions of shillings, Absa continues to deny any wrongdoing and says the claims must be tested through a full trial.
The court is yet to determine whether the bank unlawfully disclosed the customer’s confidential financial information. Until then, the allegations remain contested, with both parties expected to present evidence before a final judgment is delivered.
