Three bank CEOs, former MCA charged over alleged Ksh.363M fraud scheme

According to the Office of the Director of Public Prosecutions (ODPP), the three bank chiefs were accused of failure to report suspicion regarding proceeds of crime, contrary to Section 5 as read with Section 44(2) of the Proceeds of Crime and Anti-Money Laundering Act.

They are expected to appear before the Chief Magistrate's Court on August 11, 2026, after the court issued summons requiring them to take plea.

In the same case, the prosecution charged a former nominated Member of the County Assembly (MCA) with allegedly stealing Ksh.363,420,459 from First Assurance Investment Company Limited, where he served as a director alongside Lamu Governor Issa Abdalla Issa.

Deputy Director of Public Prosecutions Nora Otieno and Principal Prosecution Counsel Willy Momanyi told the court that the former MCA allegedly stole the money between May 18, 2018 and April 30, 2024.

The prosecution alleges that he used his position as a director and access to the company's bank accounts held at NCBA Bank, KCB Bank and Co-operative Bank to withdraw the funds.

Following a review of the evidence, the DPP approved 120 charges against the former MCA.

The charges include three counts of conspiracy to defraud, two counts of stealing, 114 counts of making a document without authority and one count of acquisition of proceeds of crime.

The prosecution alleges that the former MCA forged the signature of his co-director, Governor Issa Abdalla Issa, on several company cheques.

The cheques were allegedly presented as properly authorised, allowing the accused to withdraw money from the company's accounts.

The DPP further alleges that the former MCA acquired Ksh.363,320,459 knowing that the money was proceeds of crime arising from the alleged theft.

The former MCA pleaded not guilty before Chief Magistrate Gethi Kibiru.

He was released on a Ksh.10 million bond with one surety of a similar amount or a cash bail of Ksh.3 million.

The three bank CEOs are expected to take plea on August 11 as investigations and prosecution of the case continue.