Nairobi, July 8 -- Banks defending disputed payment claims must prove funds reached the intended recipient rather than rely on internal processing records, the High Court in Nairobi has ruled.

The court said maker-checker approvals and payment schedules do not establish payment of the money.

The ruling arose from a dispute between Consolidated Bank and Muteithia Kibira Advocates LLP over legal fees for defending the lender in an employment case lodged by its former internal quality auditor.

The bank argued it had paid a Sh72,460 deposit requested by the law firm and that requiring it to pay the full fee note of Sh497,102 would amount to unjust enrichment. The advocates maintained they never received the deposit.

In determining the dis...