Absa Bank is free to close controversial Businessman Paul Kobia’s bank account suspected to be holding billions, after the High Court dismissed Kobia’s case.
Mr Kobia went to court last year after Absa Bank wrote to him informing him that they were closing his account, since he could not account for most of the money.
Under the Central Bank of Kenya (CBK) regulations, banks should demand customers’ source of funds before crediting their accounts. The account holders should declare the source of any money being credited to their accounts or withdrawn if more than Ksh1 million.
Kobia moved to court seeking to have the regulations declared unconstitutional, arguing that the rules make cash withdrawals difficult and also breach the confidentiality of financial transactions.
However, in his ruling, Justice Wilfrida Okwany dismissed Kobia’s petition saying he failed to show how the regulations were an infringement of his rights.
“I find that the petitioner herein did not discharge the burden of proof so as to entitle him to the orders sought in the petition,” the judge said.
In 2019, Kobia was accused of conning Italiana national, Antonio Cianci, who is a director of a Dubai-based company known as Iron & Steel DMCC, Ksh130 million in a gold scam.
Following the ruling, Absa Bank will be free to close the account, suspected to be holding billions for the businessman.