In a legal battle stemming from a brazen airport robbery, Wells Fargo Limited has emerged victorious against Equity Bank Kenya Plc. The High Court dismissed a KSh 23.4 million claim (approximately $180,000 USD) filed by the bank, which sought to recoup losses from a 2019 cash-in-transit theft where KSh 47 million (about $360,000 USD) was stolen.Justice Freda Mugambi ruled that Wells Fargo was not liable, citing the bank’s failure to provide adequate on-ground security at the Submits Airstrip and Moyale.

The incident occurred in 2019 when Wells Fargo was contracted to transport KSh 60 million from nairobi to moyale for Equity Bank. Upon the aircraft’s arrival, unidentified robbers stormed the plane and absconded with KSh 47 million. Crucially, the cash had not yet been officially handed over to Equity’s ground team because no reception team was present when the plane landed.

Equity Bank, through its insurer britam General Insurance, aimed to recover KSh 23.4 million. This sum included KSh 22.5 million already paid as an insurance settlement, plus an additional KSh 900,000 for storage and assessment fees. The bank argued that Wells Fargo maintained full custody of the funds during the heist and failed to adequately protect the cash.

Wells Fargo countered by pointing to the operational agreement between the two entities. The security firm asserted its responsibility was limited to securing the cash during air transit, explicitly excluding ground security at the destination airstrip. The company maintained that, according to established practice, Equity Bank was responsible for arranging an armed reception team at remote locations like Moyale to ensure a secure handover.

Court Finds Bank Responsible for Airstrip Security

“The absence of a timely and armed reception team created an opportunity for the robbery to occur.”

Justice Mugambi sided with the security firm. She stated that the absence of Equity’s security team at the time of the aircraft’s arrival was a critical oversight that facilitated 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, thus, 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 further noted that the Service Agreement did not assign ground security responsibilities to Wells Fargo. The court also heard evidence that a consistent protocol existed, requiring Equity Bank to ensure personnel were present at remote locations to receive cash shipments.

The ruling highlights the importance of clearly defined roles in security contracts, particularly in high-stakes operations such as cash-in-transit services. Legal experts suggest the case underscores the need for strict adherence to operational procedures and may influence future partnerships between financial institutions and security firms.

The judgment offers some respite to Wells Fargo Ltd, which has consistently denied any wrongdoing. The firm had expressed concerns that an adverse ruling could set a problematic precedent for the security industry. Equity Bank may now need to reassess its internal controls and operational protocols, especially concerning logistics in high-risk areas.

The stolen KSh 47 million remains unrecovered, and the robbery investigation is ongoing.Though, this civil ruling concludes the legal dispute over liability between the bank and its service provider.