Kenya Commercial Bank (KCB) Group has been barred from using a core banking software over IP infringement and software piracy. This is after Nagalakshmi Solutions Ltd (NLS) sued the bank for continuing to use the software which powers its withdrawals and cash deposits.
Nagalakshmi Solutions Ltd (NLS) says KCB has continued to use the software even after they terminated the deal in November 2016.
According to a report published on Business Insider, High Court Judge, Judge Fred Ochieng ordered the bank to uninstall the software immediately until the case was heard.
“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.’’
NLS argued that it had incurred huge losses over the continued use of the software by the KCB. The company now wants a claim of Sh2 million or Sh244 million for the period the lender has used the software since the termination of the agreement.
The decision by the court to order the bank to uninstall the software could see major operations like withdrawals and cash deposits affected at Kenya Commercial Bank.
Keep visiting our website for more updates on this developing story.