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WPP breached law in Kenya over personal data of former CEO Scangroup

Senior leadership at advertising giant were accused of ousting Thakrar, by being motivated by “racial bias and neo-colonialist practices”.

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On Tuesday, October 30, the Kenyan Office of the Data Protection Commissioner (ODPC) found WPP Scangroup liable for breaching the Kenya Data Protection Act by improperly handling the personal data of former CEO Bharat Thakrar. The regulator has ordered the group to pay compensation for failing to comply with data protection laws.

WPP Scangroup faces a lawsuit from former CEO Bharat Thakrar for alleged data breaches, racial bias, and reputational harm, claiming $30 million in damages.

By Maria Ward-Brennan

Advertising giant subsidiary WPP Scangroup breached Kenya’s data protection law when handling the personal data of its former CEO, the man suing it for over $30m (£23m).

Earlier this year, the former CEO of WPP Scangroup Bharat Thakrar launched legal action in Kenya against the board of WPP.

Senior leadership at advertising giant were accused of ousting Thakrar, by being motivated by “racial bias and neo-colonialist practices”.

He launched a lawsuit in Kenya against the board of the British company, claiming for unlawful interference, breaches of fiduciary duties and conspiracy to injure status and reputation.

Thakrar founded Scangroup, one of Africa’s largest marketing agencies, and in 2013, it became a subsidiary of WPP.

Speaking back in March, a spokesperson for WPP said “Bharat resigned from WPP-Scangroup in 2021, following allegations of impropriety between 2014 and 2018.”

However, in his claim, Thakrar claims the advertising giant “manipulated itself into a position to control the board of Scangroup” before making allegations against him.

He also alleged that the investigation into the allegations was supposed to be kept confidential; however, details were published in the media with the “express objective of defaming” him.

 WPP is reported to have denied the allegations.

It was revealed on Tuesday that the company was found liable by the Kenyan Office of the Data Protection Commissioner (ODPC) for breaching the Kenya Data Protection Act, when they processed personal data of Thakrar.

The Kenyan regulator has ordered the group to pay compensation for failing to comply with the legislation.

The ODPC noted that during its investigation, WPP refused to provide it with copies of the report that had been shared with the Kenyan Capital Markets Authority.

A spokesperson for WPP said it disagreed with the determination by the ODPC, and are considering an appeal.

Keywords:WPP Scangroup lawsuit:Bharat Thakrar legal case:Kenya data protection breach:racial bias allegations:advertising industry scandal

Charles Wachira, Managing Editor of businessworld, has disproportionately worked as a foreign correspondent in Nairobi, Kenya. Formerly an East Africa correspondent with bloomberg, covering the business beat he has since been published by a legion of other authoritative global news platforms including Global Finance Magazine, Toward Freedom, Earth Island Journal, and Dialogue. earth and so on. He is also a co-author of, Success to Significance, a biography of pre-eminent global industrialist and renowned philanthropist Dr. Manu Chandaraia. He’s an alumnus of the University of Nairobi and Nairobi School.

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Business & Money

KCB Group Surpasses Equity with US$ 342.31 Million Nine-Month Profit

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: KCB Group reports Sh44.5B ( US$ 342.31) nine-month profit, outpacing
Equity Bank. Learn about its 49% growth, challenges, and stock performance this
year.

KCB Group Plc has outperformed Equity Bank to cement its position as Kenya’s leading
lender, posting a net profit of Sh44.5 billion for the nine months ending September

This represents a 49% year-on-year growth, surpassing Equity Bank’s Sh37.5
billion profit during the same period.

Profit Growth Driven by Core Business Performance

The remarkable profit growth was fueled by higher earnings from both interest and non-
interest income streams. KCB’s diverse revenue base has been pivotal in maintaining
its dominance in the competitive banking sector.

Non-Performing Loans a Key Concern

Despite the impressive profit growth, KCB’s non-performing loan (NPL) ratio rose to
18.5%, compared to 16.5% last year. This increase highlights persistent challenges in
managing credit risk, with Chief Financial Officer Lawrence Kimathi acknowledging it as
a “pain point” for the bank.

KCB Stock Outshines Peers on NSE

KCB’s strong financial performance has translated into exceptional stock market results.
The bank’s stock has risen 78.8% year-to-date, making it the best-performing banking
stock on the Nairobi Securities Exchange (NSE).

Plans to Sell National Bank of Kenya

Earlier this year, KCB announced plans to sell its struggling subsidiary, National Bank of
Kenya (NBK), to Nigeria’s Access Bank. While Nigerian regulators have approved the
deal, it is still awaiting clearance from Kenya’s Central Bank. The sale aims to
streamline KCB’s operations and address losses at NBK.

CEO Paul Russo Optimistic About Year-End Performance

“The journey has not been without its hurdles, but our ability to walk alongside our
customers has driven our success,” said KCB CEO Paul Russo. He expressed

confidence in closing the year on a high note, leveraging improving economic conditions
across the region.

Key Figures at a Glance

● Net Profit: Sh44.5 billion (+49%)
● Non-Performing Loan Ratio: 18.5% (up from 16.5%)
● Stock Performance: +78.8% year-to-date

KCB’s strong performance underscores its resilience in navigating challenges and its
commitment to sustaining growth in Kenya’s banking sector.

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Top 10 Kenyan banks by total assets as of 2023, based on data from the Central Bank of Kenya:

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banks in kenya

KCB Bank Kenya Limited

Total Assets: KSh 1.425 trillion
Market Share: 17.4%

Equity Bank Kenya Limited

Total Assets: KSh 1.004 trillion
Market Share: 12.2%

NCBA Bank Kenya PLC

Total Assets: KSh 661.7 billion
Market Share: 9.2%

Co-operative Bank of Kenya

Total Assets: KSh 624.3 billion
Market Share: 8.8%

Absa Bank Kenya PLC

Total Assets: KSh 520.3 billion
Market Share: 6.6%

Standard Chartered Bank Kenya

Total Assets: KSh 429.3 billion
Market Share: 5.9%

Stanbic Bank Kenya

Total Assets: KSh 449.6 billion
Market Share: 5.8%

I&M Bank Limited

Total Assets: KSh 405.6 billion
Market Share: 5.4%

Diamond Trust Bank Kenya

Total Assets: KSh 399.6 billion
Market Share: 5.3%

Bank of Baroda (Kenya) Limited

Total Assets: KSh 201.9 billion
Market Share: 2.8%

These rankings illustrate the dominance of large Tier 1 banks, which collectively control over
76% of the market share. Strategic expansions, increased deposit mobilisation, and robust
lending practices underpin the sector’s strong performance​

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Vasundhara Oswal’s Legal Struggles and Family’s Plea for Justice

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: Vasundhara Oswal, daughter of industrialist Pankaj Oswal, faces serious
charges in Uganda. The Oswals call for UN intervention amid claims of corporate
jealousy.


Vasundhara Oswal, the 26-year-old daughter of prominent Swiss-Indian industrialist
Pankaj Oswal, has found herself at the centre of a legal storm in Uganda.
Her father, a well-established business figure, is known for his diverse investments,
most notably a $150 million ethanol plant in Uganda.

This plant, the largest of its kind in East Africa, is a key part of Oswal’s broader strategy
to invest in industrial and eco-friendly solutions in the region. The facility produces extra-neutral alcohol (ENA), which is used in the beverage, cosmetics, and pharmaceutical industries.

It is recognised for its modern technology and sustainable practices, such as zero liquid
discharge, emphasising the Oswal family’s commitment to both industrial growth and
environmental responsibility.

In addition to the ethanol plant, Pankaj Oswal has made strategic investments across
various industries, including petrochemicals, agriculture, and real estate.
His ventures reflect a global reach, extending to Australia and India, where he has
been involved in industries ranging from agriculture to renewable energy.

His diversified business approach and commitment to sustainability have made him a prominent figure in international business. However, in October 2024, the family’s legacy was overshadowed by the legal troubles surrounding Vasundhara Oswal.

She was detained on October 1, 2024, after being accused of involvement in the
alleged murder of Mukesh Menaria, a former employee who had worked with the
Oswals since 2017.

Menaria had accused the family of harassment but later testified under oath that they
had not harmed him Despite this, charges of kidnapping and murder were brought against Vasundhara.

Her family has strongly denied these allegations, claiming that the charges are
politically motivated and part of a larger conspiracy orchestrated by their business rivals
in collaboration with corrupt officials in Uganda.

The Oswals have appealed to the United Nations, seeking intervention and asserting
that the legal proceedings against Vasundhara are unlawful. Vasundhara has actively managed the family business throughout her career, especially the ethanol plant, and led the company’s sustainable initiatives.

Beyond her business involvement, she has also been an advocate for community
welfare and mental health, further cementing the Oswal family’s reputation for corporate
social responsibility.

The unfolding legal drama has raised important questions about the intersection of
business, politics, and the legal systems in Uganda.

While the Oswal family’s ventures reflect a blend of industrial innovation and social
responsibility, the legal challenges Vasundhara faces have cast a shadow over their
business empire, highlighting the complex dynamics at play in East Africa.

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