Activist Francis Awino has demanded immediate suspension of KCB chief executive Paul Russo pending an independent investigation into withholding €978,675,835 allegedly withheld by KCB officials.
In a letter dated August 21, 2026, and addressed to the Chairman of KCB Group PLC, Awino raised concerns over the bank’s handling of approximately €978,675,835, equivalent to about Sh146.3 billion.
The funds, according to the letter, were transmitted through UBS Switzerland AG for the benefit of Foxcapital Investment Limited but were subsequently placed under a “HELD – PRE-SETTLEMENT SUSPENSE” status under Incident No. KCB-FIN-IT-2026-0417.
Awino said the circumstances surrounding the funds warranted immediate intervention by the bank’s board and an independent inquiry.
“We hereby call upon the Chairman and the Board of Directors of KCB Group PLC to immediately suspend the Group Chief Executive Officer, Mr. Paul Russo, from the exercise of his executive functions pending an independent investigation into the circumstances surrounding the withholding and handling of the funds,” the letter states.
Awino said the demand was based on concerns over how the extraordinary amount came into KCB’s custody, why it was not credited to the intended beneficiary and the legal basis for its subsequent withholding.
“This demand is not made lightly,” he said, adding that the matter raised serious questions about internal decisions concerning the transaction and how it had subsequently been handled.
The activist further asked the board to establish when KCB received the funds, who authorised their placement in the suspense account and the precise reason for withholding them.
He also wants the bank to establish whether any regulatory or law-enforcement agency directed KCB to retain the money and whether the Financial Reporting Centre or Central Bank of Kenya issued any directive.
Other questions raised concern internal compliance and risk assessments, the officers responsible for the transaction, whether the funds generated interest or other financial benefit while being held, and whether anyone attempted to interfere with transaction records.
Awino also raised allegations that KCB personnel had recently been involved in attempts to delete, alter, suppress or otherwise interfere with electronic records relating to the transaction.
He demanded that all electronic and physical records be secured and preserved, including SWIFT messages, transaction records, ledger entries, audit trails, system logs, emails, compliance records and internal communications.
“If confirmed, such conduct would be extremely serious and would raise questions extending beyond ordinary corporate governance,” the letter states.
Awino urged the board to appoint an independent external forensic investigator with expertise in banking, financial crime compliance, information technology, SWIFT transactions and corporate governance.
He said the investigation should establish the complete chronology of the transaction, identify decision-makers and determine whether any individual breached the law, KCB’s internal policies, regulatory requirements or governance obligations.
The letter also demands that KCB establish whether any officer or employee acted contrary to court orders and investigate alleged attempts to delete, alter or suppress electronic records.
Awino warned that failure by the board to take immediate action could prompt him to pursue the matter before judicial, regulatory and investigative authorities, including the High Court, Central Bank of Kenya and Financial Reporting Centre.
“Our position is straightforward: No Chief Executive Officer should remain in full control of a regulated financial institution while serious and credible allegations concerning his administration are awaiting investigation,” he said.
He gave the KCB board seven days from receipt of the letter to provide a substantive response.
The letter was copied to KCB directors, the Central Bank of Kenya Governor and the Director of Bank Supervision.
