Wambia v Co-operative Bank of Kenya Limited (Civil Appeal 168 of 2020) [2025] KECA 1644 (KLR)
The bottom line
#Kenya's Court of Appeal confirmed banks must give customers 30 days' written notice every time they report negative credit information to a credit reference bureau.
What this practically means
#Executive summary
#Key legal issues
#Scope of a second appeal to the Court of Appeal
The Court confined itself to matters of law, per Stanley N Muriithi & another v Bernard Munene Ithiga, but treated failure by a first appellate court to re-evaluate evidence as a point of law.
The Court invoked its settled duty on second appeals, namely to determine questions of law only, while retaining jurisdiction to intervene where the courts below considered matters they should not have, omitted matters they should have considered, or where the decision is perverse. Failure to re-evaluate evidence leading to a wrong conclusion qualifies as a point of law.
Whether the appellant's indebtedness of Kshs 8503.55 was proved
The finding by the High Court on the appellant's indebtedness was supported by the evidence on record.
The record contained demand letters on principal arrears of Kshs 19,881.35, a mini statement reflecting payments and a nil balance as at 20th December 2012, but also a bank statement showing a debit balance of Kshs 8503.55 as at 6th January 2015 and a credit report showing the information updated to a debt of Kshs 8504/= on 7th November 2016. The Court was thus persuaded the indebtedness finding was supported by the evidence.
Fairness and legality of the second referral of the appellant to a credit reference bureau in 2015
The High Court's findings on the referral were not supported by the evidence and the law and were in error; the 2015 referral was made without the mandatory notice.
The respondent proved notices for the first referral in February 2012 relating to arrears of Kshs 19,881.35, but produced no evidence of notices for the second referral in 2015 which precipitated the suit. Regulation 26(1) mandatorily requires at least thirty days' written notice before furnishing negative information, and regulation 26(2) confirms the mandatory character of that requirement by carving out only positive information. Notice is also a basic element of fair administrative action enabling the customer to dispute inaccuracies under regulations 26(3) to 26(8).
Legal principles established
#- It is mandatory that notice of the intention to furnish any negative credit information to a credit reference bureau be given to a customer, and that requirement applies every time such negative credit information is furnished by a bank.
- The 30-day notice of intention to submit negative information applies on every occasion that negative credit information is furnished, not only on the first referral.
- On a second appeal, the Court of Appeal confines itself to matters of law unless the two courts below considered matters they should not have, failed to consider matters they should have, or the decision is perverse; failure by a first appellate court to re-evaluate evidence is a point of law.
Court orders
#- 1.Set aside the judgment delivered on 30th September 2020 by the High Court of Kenya at Busia (W. Kiarie J.) in Civil Appeal No. 13 of 2019
- 2.Set aside the judgment delivered on 28th May 2019 in Busia Chief Magistrate's Court Civil Case No.110 of 2017 (Hon. M.A Odhiambo RM)
- 3.Ordered the respondent to forthwith update the appellant's credit information with the relevant credit reference bureaus by removal of the loan arrears of Kshs 8503.55
- 4.Ordered the respondent to comply with the procedure set out in the Banking (Credit Reference Bureau) Regulations 2020 with respect to the furnishing of any negative credit information to credit reference bureaus in relation to the said loan arrears
- 5.Awarded the appellant the costs of the suit in the trial Court, of the appeal in the High Court and of this appeal
- 6.Awarded nominal general damages of Kshs.100,000/- to the appellant against the respondent, with interest at court rates from the date of the judgment until payment in full
- On appeal from
- High Court of Kenya at Busia
- Civil Appeal No. 13 of 2019
- Jurisdiction invoked
- Second appeal to the Court of Appeal under the appellate jurisdiction of the Court (matters of law only in second appeals)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Wambia v Co-operative Bank of Kenya Limited (Civil Appeal 168 of 2020) [2025] KECA 1644 (KLR)", Case Analysis (2025). Second Appeal from High Court Civil Appeal No. 13 of 2019 (Busia). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/1644/eng@2025-10-03
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.