Michael Moragia Nyachae, son of former powerful Cabinet Minister Simeon Nyachae, was Thursday arrested and detained at Kileleshwa Police Station in Nairobi over alleged fraud involving Sh1.2 million.
Nyachae is expected to be arraigned in court on Friday over claims that he forged his late father’s signature and siphoned money from Sansora Group Limited, a company owned by the Nyachae family.
According to the charge sheet, Nyachae allegedly stole Sh1,226,036 from the company between March 28, 2019, and September 28, 2021, in Kisii County.
“Michael Moragia Nyachae, diverse dates between 28th March, 2019 and 28th day of September, 2021 at Kisii County within the Republic of Kenya, stole Ksh.1,226,036/= (one million two hundred and twenty six thousands and thirty six), the property of Sansora Group Limited.”
Nyachae was arrested in Kisii and taken to Nairobi ahead of plea-taking after the Office of the Director of Public Prosecutions approved the charges.
The company’s board had complained that he allegedly opened a parallel paybill number using forged documents. Police also claimed that he declined to record a statement during investigations.
His lawyers had tried in vain to have him released pending arraignment.
The matter comes amid succession disputes involving some members of the Nyachae family, which have previously drawn police involvement.
For instance, in February 2026, shareholders of companies linked to the late Nyachae were cleared to proceed with a derivative suit over the alleged fraudulent sale of a prime property in Kisii town valued at more than Sh35 million.
High Court Judge Freda Mugambi, the court allowed shareholders to file the case on behalf of Sansora Bakers & Confectioneries Limited and its parent firm Sansora Investments Ltd, paving the way for a full hearing into the disputed transaction.
At the centre of the dispute is a property in Kisii town allegedly sold for Sh8 million in May 2021, despite claims that it was worth over Sh35 million.
The shareholders argued that the sale was irregular, opaque, and deliberately undervalued.
“I have equally reviewed the plaint filed, and I am satisfied that the reliefs sought are directed towards the protection of the Company as a whole,” Justice Mugambi ruled, noting that the application met the threshold under Sections 238 and 239 of the Companies Act, 2015.
The suit named company directors Michael and Jamaludin Shamsudin Alibhai Rajwani, who are accused by a section of the Nyachae family of running the company as personal property to the detriment of other shareholders.
The shareholders claimed the company is in a precarious position due to alleged mismanagement and say the disputed sale occurred when much of the family was still grieving the death of the patriarch, leaving them unaware that assets were being disposed of.
They further allege that the directors deliberately depressed the property’s value and failed to act transparently.
The property was reportedly sold to Pine Tree Real Estate LLP, a firm said to be owned by Rajwani’s nephew.
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