Detectives from the Directorate of Criminal Investigations (DCI) Headquarters Investigations Bureau have on Wednesday presented 19 individuals before court in connection with a sophisticated fraud scheme that allegedly led to the loss of more than Sh14 billion from a Savings and Credit Cooperative (Sacco).
The case emerged following a formal complaint by the Sacco Societies Regulatory Authority (SASRA), which flagged suspected financial misconduct and embezzlement involving senior Sacco officials, prompting a comprehensive investigation.
According to investigators, early findings uncovered an elaborate and long-running fraud scheme in which Sacco officials allegedly colluded in breach of their fiduciary responsibilities.
The suspects are said to have manipulated financial records, processed irregular loan disbursements, and failed to properly account for members’ funds over several years.
DCI reports indicate that two interconnected schemes were uncovered. The first involved the alleged manipulation of loan disbursement records between 2012 and 2021, resulting in fictitious loans amounting to approximately Sh13.48 billion.
The second scheme allegedly involved the creation and operation of a shell Investment Cooperative Society Limited, which investigators say was used to divert Sacco funds.
Through this arrangement, about Sh750.7 million is believed to have been misappropriated under the guise of land acquisition and investment projects in Kitengela.
The accused persons, comprising both former and current Sacco officials, include Christopher Kahuno, Samuel Ndungu, John Kimani, James Kamau, Patrick Kimando, Francis Kamau, Benson Mwangi, Paul Wathika, Geoffrey Kamau, Duncan Chege.
Others are Francis Wachiuru, George Mwihia, Daniel Lee, Joseph Gachunga, Boniface Muthama, Rosemary Njeri, Edward Duncan, Lucy Njambi, and James Mutaiga.
They face multiple 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 unapproved investment activities, among others.
All the accused appeared before the Milimani Law Courts where they pleaded not guilty.
The court released them on a bond of Sh200,000 with one surety each. The matter will be mentioned on June 22, 2026.
The DCI has reaffirmed its commitment to tackling complex financial crimes, noting that such investigations are critical in safeguarding members’ savings and maintaining trust in Kenya’s Sacco sector.
