Court rejects City Hall bid to halt Co-op Bank’s Sh692m debt recovery Court dismissed the application and ruled that the dispute is rooted in a commercial relationship. Nairobi 20 min ago

Co-operative Bank admitted retaining part of the money but said it exercised its contractual right of set-off after Nairobi County failed to repay a payroll advance extended under a Memorandum of Understanding signed in July 2025.

The court heard that the bank had advanced the county the money to settle employees' salaries.

The bank, however, said it withheld the revenues in exercise of its contractual right after the county government shifted the payroll business to another financial lender.