Controversial businessman Paul Kobia is among the recent victims of the new banking regulatory rules having Barclays Bank close his accounts.
In a letter addressed to Kobia, Barclays Bank informed the city businessman that the lender had cut ties with him from January 14,2019.
The bank revealed that the decision was made “following a review of our business.”
In the letter, Barclays also stated that it had also ceased to offer Mr Kobia investment services.
The bank noted: “Any funds received in your favor after the closure will be returned to the remitter. We cannot, however, guarantee that such funds will be resent to you by the remitter.
“After we have closed your accounts, any additional funds remaining will be repaid,” Barclays concluded.
In response, Kobia filed a suit in court seeking to declare the new banking regulations as illegal.
According to Mr Kobia, the regulations are intended to hinder investment from abroad and violate the privacy of the clients.
The regulations set by the Central Bank of Kenya (CBK) highlights that an individual is required to reveal the source of any money flowing into their accounts.
In his suit, Kobia sued the CBK and Attorney General Paul Kihara claiming that Barclays’ decision was made following new rules.