The High Court in Kenya has ruled in favour of Wells Fargo Limited, dismissing a KSh 23.4 million claim filed by Equity Bank Kenya Plc over the theft of KSh 47 million during a cash-in-transit operation in 2019. The ruling, delivered by Justice Freda Mugambi, absolves the security firm of any liability, stating that the theft occurred due to Equity Bank’s failure to provide on-ground security at the Odda Airstrip in Moyale.
The case revolved around an incident in 2019, when Wells Fargo was contracted to airlift KSh 60 million in cash from Nairobi to Moyale on behalf of Equity Bank. However, on arrival at the destination, a group of unidentified robbers stormed the aircraft and made away with KSh 47 million. The money had not yet been officially handed over to Equity’s ground team, as no reception team was present at the airstrip when the plane landed.
Equity Bank, working through its insurer Britam General Insurance, had sought to recover KSh 23.4 million, which included KSh 22.5 million already paid as part of the insurance settlement and an additional KSh 900,000 for storage and assessment fees. The bank claimed that Wells Fargo was still in full custody of the funds at the time of the heist and that the security firm had failed in its duty to safeguard the cash.
However, Wells Fargo defended its role by referring to the terms of the operational agreement between the two parties. The firm noted that it was responsible for securing the cash during air transit, but not for providing ground security at the destination airstrip. The company stated that, based on long-standing operational practice, it was the bank’s duty to arrange for an armed reception team at remote locations like Moyale to ensure the safe handover of cash.
In delivering her verdict, Justice Mugambi said the absence of Equity’s security team at the time of the aircraft’s arrival was a critical failure that enabled the robbery. “The absence of a timely and armed reception team created an opportunity for the robbery to occur and interrupted the intended chain of custody. The loss, therefore, was not attributable to negligence on the part of Wells Fargo, but rather to the bank’s own omission in fulfilling its part of the agreed operational arrangement,” she ruled.
The judge also stated that the Service Agreement between the parties did not place the responsibility of providing ground security on Wells Fargo. Furthermore, it was established during the hearing that both parties had a consistent protocol, under which Equity Bank was to ensure personnel were present at remote locations to receive cash consignments.
This ruling is seen as a strong statement on the importance of clearly defined roles in security contracts, especially in high-risk logistics like cash-in-transit services. Legal observers say the case underlines the significance of compliance with operational procedures and may influence how financial institutions and security firms approach future partnerships.
The judgment also provides some relief to Wells Fargo Ltd, which has maintained its innocence since the incident. The firm had expressed concerns that being held liable in this case could have set a dangerous precedent for the industry. In contrast, Equity Bank may now be expected to review its internal controls and operational processes, especially when it comes to logistics in high-risk regions.
The stolen KSh 47 million has not yet been recovered, and the robbery case remains unsolved, with law enforcement agencies still investigating the matter. Meanwhile, this civil ruling brings closure to the legal dispute over liability between the bank and its service provider.
