Detectives from the Directorate of Criminal Investigations (DCI) headquarters Investigations Bureau brought before court nineteen individuals linked to a sophisticated fraud scheme that saw a Sacco lose over Sh14 billion.
The matter came to light after the Sacco Societies Regulatory Authority submitted a formal request to the DCI, urging an inquiry into serious allegations of financial misconduct and embezzlement by Sacco officials.
An immediate investigation unveiled a web of deceit, where Sacco officials acted in concert, blatantly violating their fiduciary duties.
They manipulated financial records, irregularly transferred members’ funds, unlawfully disbursed loans, and failed to account for significant amounts entrusted to their care.
Two interconnected fraudulent schemes were identified.
The first saw a decade-long manipulation of loan disbursement figures from 2012 to 2021, leading to fictitious loans totalling an astonishing Sh13,483,350,322.
The second scheme involved the illegitimate formation and operation of an Investment Cooperative Society Limited, investigations show.
This was a facade that allowed officials to divert Sacco funds, misappropriating Sh750,766,304 under the guise of land acquisition and investment opportunities in Kitengela.
The suspects, comprising former and current officials of the Sacco, include Christopher Kahuno, Samuel Ndungu, John Kimani, James Kamau, Patrick Kimando, Francis Kamau, Benson Mwangi, Paul Wathika, Geoffrey Kamau, Duncan Chege, Francis Wachiuru, George Mwihia, Daniel Lee, Joseph Gachunga, Boniface Muthama, Rosemary Njeri, Edward Duncan, Lucy Njambi, and James Mutaiga.
They now face a barrage of charges, including conspiracy to defraud, stealing by directors or officers, fraudulent false accounting, obtaining credit by false pretences, failure to maintain proper books of accounts, and operating non-core investment businesses without statutory approval, among other offences.
Appearing before the Milimani Law Courts today, all the suspects pleaded not guilty to the charges and were granted a bond of Sh200,000 with one surety each.
The case is set for mention on June 22, 2026.
The DCI said it remains steadfast in its commitment to dismantling complex financial crime networks and protecting millions of hardworking Kenyans who rely on Saccos as pillars of economic empowerment and financial security.
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