Three top bank executives and a former Member of the County Assembly (MCA) are at the centre of a major fraud case after the Office of the Director of Public Prosecutions (ODPP) approved charges linked to an alleged KSh363 million scheme.
In a statement, the DPP confirmed that the Chief Executive Officers of NCBA Bank, KCB Bank, and Co-operative Bank have been charged with failure to report suspicion regarding proceeds of crime.
The offence falls under the Proceeds of Crime and Anti-Money Laundering Act.
The three CEOs are expected to take plea before the Chief Magistrate’s Court on August 11, 2026, following summons issued by the court.
Separately, prosecutors have charged a former nominated MCA accused of orchestrating the alleged fraud at First Assurance Investment Company Limited.
The suspect, who served as a director at the firm alongside Lamu Governor Issa Abdalla Issa, is alleged to have stolen KSh363,320,459 over a six-year period.
According to the prosecution, the offences were committed between May 18, 2018, and April 30, 2024.
Deputy Director of Public Prosecutions Nora Otieno and Principal Prosecution Counsel Willy Momanyi told the court that the accused exploited his position and access to company bank accounts held in the three banks to siphon funds.
“The accused leveraged his authority as a director and manipulated access to company accounts to facilitate illegal withdrawals,” the prosecution stated.
The DPP approved a total of 120 charges against the suspect. These include three counts of conspiracy to defraud, two counts of stealing, 114 counts of making documents without authority, and one count of acquisition of proceeds of crime.
Court documents indicate that the accused allegedly forged the signature of his co-director, Governor Issa, on multiple company cheques.
The prosecution claims the forged documents were used to falsely present transactions as authorised, enabling the withdrawal of funds.
“The accused is believed to have knowingly acquired funds that were proceeds of crime arising from the alleged theft,” prosecutors added.
The suspect pleaded not guilty before Chief Magistrate Gethi Kibiru. He was released on a bond of KSh10 million with one surety of a similar amount or an alternative cash bail of KSh3 million.
The case is expected to test enforcement of anti-money laundering laws and corporate accountability within Kenya’s banking sector