NAIROBI, Kenya — The Director of Public Prosecutions (DPP) has charged the chief executive officers of NCBA Bank, KCB Bank and Co-operative Bank with allegedly failing to report suspected proceeds of crime linked to an alleged Sh363.4 million fraud scheme.
According to the Office of the Director of Public Prosecutions (ODPP), the three bank CEOs have been charged with 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 (POCAMLA).
The three executives are expected to take plea before the Chief Magistrate’s Court on August 11, 2026, after the court issued summons requiring them to appear.
The charges arise from investigations into the alleged theft of Sh363,420,459 from First Assurance Investment Company Limited, where a former nominated Member of the County Assembly (MCA) served as a director alongside Lamu Governor Issa Abdalla Issa.
Former MCA Faces 120 Charges
The former MCA was arraigned in court on Wednesday and charged with allegedly stealing the funds between May 18, 2018, and April 30, 2024.
Prosecutors told the court that the accused exploited his position as a company director and his access to the firm’s bank accounts held at NCBA Bank, KCB Bank and Co-operative Bank to unlawfully withdraw company funds.
Deputy Director of Public Prosecutions Nora Otieno and Principal Prosecution Counsel Willy Momanyi said investigations established sufficient evidence to support multiple criminal charges.
Following a review of the evidence, the DPP approved 120 charges, including:
- 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.
Alleged Forgery of Co-Director’s Signature
The prosecution alleges that the accused forged the signature of his co-director, Governor Issa Abdalla Issa, on numerous company cheques and falsely presented them as duly authorised, facilitating the unlawful withdrawal of company funds.
The DPP further contends that the accused knowingly acquired Sh363,320,459, allegedly constituting proceeds of crime arising from the fraudulent scheme.
The accused denied all the charges when he appeared before Chief Magistrate Gethi Kibiru.
The court released him on a bond of Sh10 million with one surety of a similar amount, or an alternative cash bail of Sh3 million, pending the hearing of the case.
Meanwhile, the criminal proceedings against the three bank chief executives are expected to commence on August 11, when they are scheduled to take plea over the alleged failure to report suspicious financial transactions as required under Kenya’s anti-money laundering laws.
