A business dispute involving KCB Bank has left businessman Powell facing the collapse of his company, mounting debts, lost property and the suffering of his family after millions of shillings meant to pay an Indian fabric supplier became trapped in an international bank transfer.
Powell, who previously operated Powel Jea Enterprise Limited, employed approximately 30 people, including skilled workers and sales staff. However, he says a series of decisions and delays by KCB Bank turned a business that was supporting several families into a financial and personal crisis that has lasted nearly three years.
The trouble began in 2023 when Powell travelled to India to identify a supplier of t-shirt fabrics. He placed an order worth approximately Sh5.9 million and paid a deposit of Sh2 million. According to his account, he had the funds available despite servicing a bank loan without difficulty.
Two weeks after returning to Kenya, the supplier informed him that production had been completed and the remaining balance was required before the goods could be shipped. Powell sent Sh1 million through PesaLink and later visited his KCB branch, where he arranged an exchange rate and transferred approximately Sh1.92 million through RTGS.
He also withdrew nearly Sh1 million from his Sidian Bank account, deposited most of it at KCB’s Two Rivers branch and sent the money to the supplier. Powell believed the payments had been completed until the supplier reported that the final two transfers could not be accessed.
The supplier’s bank requested documentation confirming that the money was intended to purchase fabric for Powell’s company. He then visited KCB’s Jogoo Road branch, where he says an assistant manager, identified as Kevin, advised him to recall the funds and resend them through the company account.
Powell signed a recall letter, but the branch manager, identified as Eunice, reportedly intervened and advised against the move because of possible exchange rate losses. According to his account, she instructed Kevin to cancel the recall and allow the original transfers to proceed. Powell signed another letter and left the bank expecting the matter to be resolved.
A week later, the supplier informed him that the funds had been recalled. KCB staff allegedly told Powell that the money was held by an intermediary bank in the United States. He says he spent the following two months visiting the bank almost daily without receiving a clear explanation or a resolution. A demand letter from his lawyer, which gave the bank 72 hours to respond, also failed to produce the outcome he wanted.
The delay had serious consequences for his business. Powell says his monthly loan repayments of Sh550,000 fell into arrears after his working capital became inaccessible. He later noticed activity in his account, where the bank had recovered the money, cleared his outstanding loans and left a remaining balance.
The following morning, the supplier confirmed that only Sh900,000 had eventually arrived.
Powell says the funds were no longer sufficient to complete the purchase, leaving the custom-made fabrics with the supplier and his business without the stock it needed.
He subsequently moved to court, seeking orders requiring the bank to complete the transfers so he could pay the supplier and revive his operations. The case, which began in August 2023, has continued for years.
After judgment was scheduled for August 28, 2026, KCB applied to reopen the matter. The court allowed the application, with the next hearing scheduled for December 9, 2026.
In the meantime, Powell says his company has collapsed, his 30 employees have lost their jobs and his family has faced severe financial hardship.
He claims his children stopped attending school, while friends and microfinance lenders pursued him over unpaid debts. He also lost his vehicles, and property associated with his business was auctioned over rent arrears.
Powell further claims that KCB continues to hold his land and has maintained his listing with credit reference bureaus despite court orders that he says required its removal.
The businessman says he has not received a proper investigation or a satisfactory explanation from the bank. He hopes the Central Bank of Kenya will examine his case and help establish what happened to the money and why the dispute has continued for so long.
The experience has also affected his mental health. Powell says he feels as though he has lost almost everything and fears that his suffering could go unnoticed.
