NAIROBI, Kenya May 27 – Nineteen suspects have been arraigned at the Milimani Law Courts in connection with a sophisticated financial fraud scheme that allegedly led to the loss of more than Sh14 billion from a SACCO.
Detectives from the Directorate of Criminal Investigations (DCI) Headquarters Investigations Bureau presented the suspects in court following a probe triggered by a formal complaint from the Sacco Societies Regulatory Authority (SASRA), which raised concerns over suspected financial misconduct and embezzlement.
According to investigators, the suspects—comprising both former and current SACCO officials—were part of an elaborate scheme that involved systematic manipulation of financial records, unlawful loan disbursements, and failure to account for members’ funds entrusted to the institution.
DCI reports indicate that one of the key schemes involved a long-running manipulation of loan disbursement records between 2012 and 2021, which resulted in fictitious loans amounting to approximately Sh13.48 billion.
A second scheme allegedly involved the creation and operation of an Investment Cooperative Society Limited, which investigators say was used as a front to siphon SACCO funds. Through this arrangement, about Sh750.7 million is said to have been misappropriated under the guise of land purchases and investment ventures in Kitengela.
The accused persons 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 face multiple charges, including conspiracy to defraud, stealing by directors or officers, fraudulent false accounting, obtaining credit by false pretences, failure to keep proper financial records, and operating unauthorized investment activities.
When they appeared before the court, all the accused denied the charges and were each released on a bond of Sh200,000 with one surety.
The matter will be mentioned on June 22, 2026, as the prosecution and defence prepare for further proceedings.
The DCI has reaffirmed its commitment to tackling complex financial crimes, noting that the case highlights ongoing efforts to safeguard SACCO members’ savings and strengthen accountability within Kenya’s cooperative sector.
