NCBA Bank Wins Appeal, Clears Liability in Motorcycle Accident

Strategic Insights -

A High Court in Kakamega has overturned a ruling that held NCBA Bank jointly liable with the vehicle owner for a road accident that occurred on December 31, 2017. The court found that NCBA Bank should not be held responsible for the conduct of the vehicle's driver, as there was no employer-employee or principal-agent relationship between the bank and the driver. The court also ruled that mere co-registration of a motor vehicle for financial security does not attract legal liability in case of an accident.

Key Takeaways:

  • The High Court in Kakamega overturned an earlier ruling that held NCBA Bank jointly liable with the vehicle owner, Ernest Isiaho, for a motorcycle accident that occurred on December 31, 2017.
  • The court found that NCBA Bank should not be held responsible for the conduct of the vehicle's driver, as there was no employer-employee or principal-agent relationship between the bank and the driver.
  • The court ruled that mere co-registration of a motor vehicle for financial security does not attract legal liability in case of an accident.
  • NCBA Bank had financed the purchase of the vehicle, with Isiaho registering it jointly to secure the loan, but the bank stated it had no control over the vehicle or its driver.
  • Shikanga, the motorcycle's passenger, had sued both NCBA Bank and Isiaho, seeking general and special damages, and was awarded Sh1,521,000 in damages in July 2022.
  • The court cited precedent cases, including a 2010 case where logbook registration was not conclusive evidence of ownership, and a case where financiers with no control over a vehicle could not be held liable for its misuse.
  • Justice Bett ruled that liability for the accident rests entirely with Ernest Isiaho, and ordered him to pay the costs of both the appeal and the original trial.

Statistics:

  • Date of the road accident: December 31, 2017
  • Amount awarded to Shikanga in damages: Sh1,521,000
  • Date of the ruling by the Chief Magistrate's Court in Kakamega: July 2022
  • Date of the ruling by the High Court in Kakamega: June 13, 2025
  • Cost of the appeal and the original trial: to be paid by Ernest Isiaho

Sources:

  • "NCBA Bank wins court fight over liability in road accident" [in Daily Nation, June 14, 2025]
  • "High Court Rules in Favour of NCBA Bank in Kakamega" [in Business Daily, June 14, 2025]
  • "Judgment in Kakamega accident case" [in Kenya Law, June 13, 2025]