Lawyer seeks Sh20m in damages after KCB erroneously lists him as loan defaulter

Lawyer Danstan Omari argues that the wrongful listing as a loan defaulter has severely damaged his reputation and career prospects. [File, Standard] City lawyer Danstan Omari has filed a lawsuit seeking Sh20 million in damages against Kenya Commercial Bank (KCB) for allegedly listing him as a loan defaulter, despite having fully repaid his loan in 2015. Omari in the lawsuit filed at Milimani Commercial Chief Magistrate Omari claims that the wrongful listing has severely damaged his reputation and career prospects, including his future political ambitions. Through his lawyer Shadrack Wambui, argues that the false listing has tarnished his public image and affected his career, including his aspirations to run for a political seat in the 2027 General Election. "This wrongful listing has severely damaged my credibility and professional standing. It is a calculated move to brand me as bankrupt and prevent me from contesting the Nairobi senatorial seat in the 2027 general election," Omari said in his suit papers. Omari, a law lecturer, and political analyst, was shocked to discover that KCB had listed him as a defaulter on the Credit Reference Bureau (CRB) records. The defamation claim stems from an erroneous entry that falsely shows the lawyer as owing Sh63,509 on a loan he repaid in full nearly a decade ago. The false listing, which came to light during Omari's recent application for a loan from another bank, has left him grappling with severe consequences for his professional and financial standing. "I took a loan and fully repaid it in 2015. However, when I recently applied for another loan, I was shocked to learn that my name was still listed as a defaulter," Omari asserts in court documents. Omari's troubles began on December 10, 2024, when he applied for a loan from Cooperative Bank, only to be informed that he was still listed as a defaulter with the TransUnion Credit Reference Bureau (CRB). A subsequent investigation revealed that KCB was behind the erroneous listing, dating back to a loan facility from 2015, which Omari claims had been fully repaid via the check-off system by the end of that year. Omari had received no prior indication that the loan was still listed as outstanding or that there had been any errors in the bank's records. Despite being assured by KCB that the matter would be rectified, Omari alleges that the bank failed to take any action to correct the misinformation, continuing to report him as a defaulter without regard for the fact that the loan had long been cleared. This oversight has now put Omari in a difficult position, hindering his ability to secure future loans and casting a shadow on his financial reputation. In his court filings, Omari highlights how the defamation has extended beyond the immediate financial consequences. His professional reputation as a political analyst and trusted advocate has been significantly harmed, with potential employers and financial institutions now viewing him as a credit risk. Omari claims that KCB acted recklessly by failing to correct the erroneous entry despite multiple efforts on his part to engage with the bank. Court papers outline how Omari reached out to KCB several times, seeking clarification and requesting that the incorrect listing be updated. However, Omari's efforts were met with empty promises, and his credit report continued to show the same false information. The lawyer accuses KCB of gross negligence in its handling of his case, failing to notify him of the negative listing before submitting it to CRB, as is required by law. In addition to this, Omari alleges that the bank did not provide him with an opportunity to contest the false information before it was made public, thereby causing lasting damage to his professional standing and financial health. Now, Omari is seeking Sh20 million in aggravated damages for the harm caused by KCB's actions. In addition to financial compensation, Omari is asking the court to issue a mandatory order requiring the bank to retract the defamatory listing and publicly acknowledge its error. He also seeks a formal apology from KCB for the damage to his reputation, which he argues has been irreparably tarnished by the false credit report. The lawyer also requests that the court order the bank to expunge the inaccurate listing from his record entirely, to prevent further harm to his credit profile. Omari's legal team is firm in its assertion that the bank acted with a disregard for the truth, causing significant reputational harm and financial hardship. "The defamatory statements were recklessly disseminated to TransUnion CRB and shared with third-party financial institutions, making them public and exposing the plaintiff to further reputational damage," the court papers read. The matter has been fixed for hearing before Principal Magistrate Hosea Mwangi Nganga.

Lawyer seeks Sh20m in damages after KCB erroneously lists him as loan defaulter

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Lawyer seeks Sh20m in damages after KCB erroneously lists him as loan defaulter

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