Court Orders KCB To Stop Using NLS Banking Software


Judge Fred Ochieng of the High court of Kenya has barred the The Kenya Commercial Bank (KCB) group from using a banking software owned by Nagalakshmi Solutions Ltd (NLS)

This follows a court case filled by  NLS against the bank for continuing to use the software even after they terminated the contract in November 2016.

In a recent rulling, the Judge  ordered the bank to uninstall the software immediately until the case was heard which could see major operations at the facility halted.

The Judgement

Pending the hearing and determination of this suit the defendant (KCB Bank) by themselves or their agents or servants or otherwise be restrained from using the plaintiff’s (Nagalakshmi Solutions Ltd) computer software.

“KCB Bank provides a systems audit report from an independent and credible systems auditor confirming that all of Nagalakshmi Solutions Ltd software applications and developments have been stripped out of the bank’s servers. Central processing and data recovery sites,” Justice Ochieng ordered on Monday.

Compel Arbitration

As reported by the Business dailyKCB Group has filed a petition to compel arbitration siting that the agreement provides that any dispute arising from the agreement connected to it should be referred to arbitration, whose decision shall be final and binding upon the parties.

Arbitration is a private, faster and less expensive way of resolving disputes than going to trial.

NLS argued that it had incurred huge losses over the continued use of the software by the bank group.

The company now wants a daily claim of KES 2 million or KES 244 million for the 122 days the lender has used the software since the termination of the agreement.

Major operations like withdrawals,cheque deposits and cash deposits at KCB could be affected following the new order.

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