Business 9 April 2026 The Observer (Uganda)
High Court Clears Absa Bank in Shs 8.5m Fraud Case, Blames Customer Negligence
Uganda's High Court has ruled in favor of Absa Bank Uganda, formerly Barclays, dismissing liability for an unauthorized Shs 8.5 million withdrawal from customer Eron Kabachwamba's account due to her failure to secure her card and PIN. The decision overturned a lower court's order for the bank to refund the amount. Source: https://observer.ug/news/court-faults-customer-clears-absa-in-shs-8m-fraud-case
The High Court in Uganda has exonerated Absa Bank Uganda from responsibility in a fraud incident involving Shs 8.5 million stolen from customer Eron Kabachwamba’s account. Justice Stephen Mubiru faulted Kabachwamba for negligence in protecting her Visa debit card and PIN, breaching her banking agreement terms.
This ruling came after the bank appealed a grade one magistrate’s decision that had held it accountable and mandated a refund. The judge criticized the lower court’s evidence assessment and cleared Absa of any wrongdoing.
Court documents reveal that on January 18, 2013, the large sum was withdrawn in Nairobi, Kenya, without Kabachwamba’s approval. She had deposited funds the next day and was notified later. The debit hit her account on January 22 despite her prompt report.
Absa’s investigation pointed to a December 28, 2012, transaction at Emin Pasha Hotel in Kampala. Kabachwamba handed her card to an attendant who mentioned a technical issue and held it briefly out of sight, likely enabling card skimming and cloning.
The bank’s monitoring system flagged the suspicious Nairobi activity, but contact attempts failed as Kabachwamba’s phone was off. Justice Mubiru deemed her account inconsistent, confirmed the fraud stemmed from skimming—not theft—and upheld the bank’s security measures.
The earlier judgment was quashed, with Kabachwamba ordered to cover case costs.
Source: The Observer (Uganda)