NAIROBI, July 14 – Kenya’s High Court has ruled that Diamond Trust Bank (DTB) and Safaricom are both responsible for losses suffered by a customer who lost KES 4.4 million ($34,000) in a SIM swap fraud, saying each company failed in its duty to protect.
The case stemmed from an incident in February 2022 when fraudsters hijacked the customer – Mercy Wairimu Kariuki’s phone line. Although she reported the SIM swap to Safaricom the same day and later had her line restored, her bank account was emptied through a series of mobile banking transfers and Pesalink withdrawals.
Justice Asenath Ongeri upheld an earlier court ruling that divided liability between the two companies. DTB was ordered to pay Kariuki KES 1.79 million ($13,800), while Safaricom will pay KES 2.63 million ($20,300), reflecting a 40:60 split.
The court found that Safaricom’s failure to stop the SIM swap allowed the fraud to happen, while DTB failed to detect and stop a pattern of unusual transactions that should have triggered additional checks.
DTB argued that the transactions were authorised because the correct PIN was used and that the SIM swap broke the chain of responsibility. However, the court rejected the argument, stating that banks cannot rely solely on PIN verification when transactions clearly appear suspicious.
The judge also dismissed the bank’s claim that some of the transfers took place over a weekend, noting that banking systems operate around the clock and are expected to identify unusual activity regardless of the day.
