DCI Arraigns 19 Suspects Over Alleged Ksh14 Billion Sacco Fraud Scheme

Detectives from the Directorate of Criminal Investigations have arraigned 19 suspects in connection with an alleged Ksh14 billion fraud scandal involving a Sacco, in a scheme spanning nearly a decade.

According to the DCI, the case emerged after the Sacco Societies Regulatory Authority formally requested investigations into allegations of financial misconduct and embezzlement by Sacco officials.

Investigations conducted by the DCI Headquarters allegedly uncovered widespread financial irregularities involving former and current Sacco officials accused of breaching their fiduciary duties.

Detectives claim the suspects manipulated financial records, irregularly transferred members’ funds, unlawfully disbursed loans, and failed to account for billions of shillings entrusted to the Sacco.

Two Fraudulent Schemes Uncovered By DCI

The DCI said investigators identified two interconnected fraudulent schemes.

The first allegedly involved manipulation of loan disbursement figures between 2012 and 2021, resulting in fictitious loans amounting to Ksh 13,483,350,322.

The second scheme reportedly involved the formation and operation of an Investment Cooperative Society Limited, which detectives described as a front used to divert Sacco funds.

Investigators allege that Ksh 750,766,304 was misappropriated under the guise of land acquisition and investment projects in Kitengela.

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Suspects Arraigned

Those charged include Christopher Kahuno, Samuel Ndungu, John Kimani, James Kamau, Patrick Kimando, Francis Kamau, Benson Mwangi, Paul Wathika, and Geoffrey Kamau.

Others are Duncan Chege, Francis Wachiuru, George Mwihia, Daniel Lee, Joseph Gachunga, Boniface Muthama, Rosemary Njeri, Edward Duncan, Lucy Njambi, and James Mutaiga.

The suspects are facing multiple charges, including conspiracy to defraud, stealing by directors or officers, and fraudulent false accounting.

More charges are obtaining credit by false pretences, failure to maintain proper books of accounts, and operating non-core investment businesses without statutory approval, among other offences.

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Suspects Pleaded Not Guilty

The accused persons appeared before the Milimani Law Courts on Wednesday, where they all pleaded not guilty to the charges.

The court granted each suspect a bond of Ksh200,000 with one surety. The matter will be mentioned on June 22, 2026.

DCI said it remains committed to combating complex financial crimes and safeguarding Kenyans who depend on Saccos for economic empowerment and financial security.

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