Former insurance firm employee charged over Ksh.89.5 million theft

A former Credit Control Officer at an insurance company has been charged with stealing Ksh.89.5 million from his former employer in a suspected fraud scheme involving the manipulation of financial systems and suspicious transactions.

Bernard Kariuki Ngugi was arraigned at the Milimani Law Courts on Friday, October 23, 2026, where he denied charges of theft by servant, money laundering and other related offences.

He was released on a bond of Ksh.2 million or an alternative cash bail of Ksh.800,000. The case will be mentioned on November 10, 2026, for pre-trial directions.

According to the Directorate of Criminal Investigations (DCI), detectives from the Banking Fraud Investigations Unit (BFIU) established that the alleged fraud occurred between 2018 and November 2025, when Ngugi is suspected of using his privileged access to the company's financial systems to divert Ksh.89,579,274.

Investigators allege that the funds were channelled through three companies identified as Auris General Merchants Ltd, Donbitz Global Limited and Pedram Global Limited, which reportedly had no legitimate business relationship with the insurance firm and were not entitled to receive the payments.

The DCI said the suspect allegedly manipulated the company's financial systems to introduce the three entities into its payment chain, enabling the diversion of corporate funds.

Investigations established that Ksh.35.27 million was channelled through Auris General Merchants Ltd, while Donbitz Global Limited received Ksh.32.68 million. A further Ksh.21.63 million was allegedly diverted through Pedram Global Limited.

Detectives also established that subsequent withdrawals and transfers were made under circumstances suspected to have been intended to conceal the origin and movement of the funds.

The investigation file was forwarded to the Office of the Director of Public Prosecutions (ODPP), which agreed with the investigators' recommendation to charge Ngugi over the alleged scheme.

He was subsequently tracked down and arrested in Nairobi before being presented in court to face the charges.