NAIROBI, Kenya — Detectives from the Directorate of Criminal Investigations (DCI) have arrested a former SACCO accountant accused of orchestrating a Sh16 million fraud scheme involving forged cheques and collusion with external accomplices.
In a statement issued on Saturday, February 15, the DCI said officers from its Banking Fraud Investigation Unit (BFIU) apprehended the suspect following what it described as meticulous investigations into suspicious financial transactions at a Savings and Credit Cooperative Society (SACCO).
“An accountant has been apprehended for masterminding a fraudulent scheme that led to a sacco lose over Sh16 million, thanks to meticulous investigations by detectives from the Banking Fraud Investigation Unit (BFIU),” the agency said.
According to investigators, the suspect allegedly authorised cheque payments from members’ accounts in collaboration with external accomplices, leading to an initial loss of Sh6,852,166.
Further forensic audits uncovered additional fraudulent transactions amounting to Sh9,161,000, bringing the total loss to Sh16,013,166.
Preliminary findings suggest the suspect did not act alone.
Detectives linked the scheme to a businessman, described as a director of a construction company, whose cheques were allegedly fraudulently processed and cashed.
Authorities say the funds were channelled into accounts belonging to the businessman and other SACCO members.
Investigators established that 58 cheques were issued, cleared, and deposited without being recorded in the SACCO’s official cheque ledger.
Detectives believe this omission points to a deliberate attempt to conceal the fraud. Forensic analysis has also reportedly connected the suspect to forged withdrawal slips used to siphon off part of the funds.
The latest arrest follows the January 17 apprehension of the businessman linked to the case.
The DCI said investigations are ongoing as authorities pursue other suspects believed to have participated in the scheme.
The accountant is expected to be arraigned in court on Monday.
The arrest comes amid growing national scrutiny of governance within cooperative financial institutions.
The government recently ordered a fresh inquiry into the Kenya Union of Savings and Credit Cooperatives (KUSCCO) following concerns over financial oversight and management practices.
The inquiry aims to examine internal operations, governance frameworks, and the conduct of current and former management committees.
Under the Sacco Societies Act and oversight by the Sacco Societies Regulatory Authority (SASRA), cooperative institutions are required to maintain strict accounting controls and transparent reporting standards.
Governance lapses can expose members’ savings to risk and undermine trust in the sector.
