Nairobi News


Barclays Bank closes accounts of flashy city businessman Paul Kobia

Barclays Bank has closed accounts owned by controversial businessman Paul Kobia, a move he now claims is related to new regulations requiring individuals to reveal the source of any money flowing into their accounts.

The lender cut ties with Mr Kobia on January 14, a month after notifying him of the move.

The notification letter stated that the decision was made “following a review of our business”.

In the letter, Barclays states that it has also ceased offering Mr Kobia investment services.

The letter is attached as evidence in a suit Mr Kobia has filed seeking to declare the new regulations illegal, claiming that they will hinder investment from abroad and violate the privacy of clients.

Mr Kobia has sued the Central Bank of Kenya and Attorney General Paul Kihara Kariuki claiming that Barclays’ decision was made following new rules that require individuals and institutions to reveal the source of money coming in or going out of their bank accounts.

“Any funds received in your favour after the closure will be returned to the remitter. We cannot, however, guarantee that such funds will be resent to you by the remitter,” the banks states.

“After we have closed your accounts, any additional funds remaining will be repaid.”