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Court stops Kenya Commercial Bank from use of banking software over piracy

A Kenyan High Court has reportedly barred the Kenya Commercial Bank (KCB) Group from using a core banking software powering its withdrawals and deposits over IP infringement and software piracy.

According to reports reaching TechMoran, Nagalakshi Solutions Limited (NLS) through their lawyers Lumumba and Lumumba Advocates have put an injunction on KCB stopping the group from further fraudulent use of its banking software after they terminated the deal in November 2016.

Pending the hearing and determination of this suit the defendant (KCB Bank) by themselves or their agents or servants or otherwise be restrained from using the plaintiff’s (Nagalakshmi Solutions Ltd) computer software.

“KCB Bank provides a systems audit report from an independent and credible systems auditor confirming that all of Nagalakshmi Solutions Ltd software applications and developments have been stripped out of the bank’s servers. Central processing and data recovery sites,” Justice Ochieng ordered on Monday as reported by Business Insider Africa (PLive).

Other reports indicate that the bank had wanted to take over NLS but talks did not materialize, the bank’s Board of Directors have reportedly asked to solve the matter with NLS out of court.

Nagarajan Karthik, NLS Chairman accuses KCB Group in 2015, though its Chief Information Officer proposed to acquire a 49 per cent of NLS as most of the group’s transactions were carried over NLS systems which the bank still uses till today after the termination of their contract. For fraudulent use of its software, NLS is asking for Ksh 2 million each day since termination of the contract between the two or  Ksh 244 million for the 122 days.

NLS says it only worked with the bank from May 18, 2011 and terminated the contract on November, 27, 2016 but KCB is still suing its software. NLS aims to strip down its software which will be detriment to the core banking operations such as cash deposit and withdrawals at all its branches regionally.

TechMoran will give a detailed account of this development as we get the facts in.

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