NAIROBI, Kenya — Detectives from the Directorate of Criminal Investigations have arraigned 19 suspects linked to an alleged Sh14 billion Sacco fraud scheme involving fictitious loans, embezzlement, and manipulation of financial records.
The suspects appeared before the Milimani Law Courts after investigations uncovered what authorities described as a sophisticated financial fraud network involving former and current Sacco officials.
Investigations Triggered by Sasra Complaint
According to the DCI, investigations began after the Sacco Societies Regulatory Authority formally requested a probe into allegations of financial misconduct and embezzlement within the Sacco.
Detectives said preliminary findings revealed coordinated fraudulent activities by officials who allegedly breached their fiduciary duties by manipulating financial records, irregularly transferring members’ funds, unlawfully disbursing loans, and failing to account for billions of shillings entrusted to the institution.
Fake Loans Worth Sh13.4 Billion
Investigators identified two interconnected fraud schemes that allegedly operated over several years.
The first involved manipulation of loan disbursement records between 2012 and 2021, resulting in fictitious loans amounting to approximately Sh13.48 billion.
According to the DCI, Sacco officials allegedly altered financial records to conceal irregular transactions and create false loan accounts.
The second scheme involved the alleged illegal formation and operation of an investment cooperative society used to divert Sacco funds.
Authorities claim officials misappropriated more than Sh750 million under the pretext of land acquisition and investment opportunities in Kitengela.
Suspects Face Multiple Charges
The accused persons include Christopher Kahuno, Samuel Ndungu, John Kimani, James Kamau, Patrick Kimando, Francis Kamau, Benson Mwangi, Paul Wathika, Geoffrey Kamau, Duncan Chege, Francis Wachiuru, George Mwihia, Daniel Lee, Joseph Gachunga, Boniface Muthama, Rosemary Njeri, Edward Duncan, Lucy Njambi, and James Mutaiga.
They face multiple charges, including conspiracy to defraud, stealing by directors or officers, fraudulent false accounting, obtaining credit by false pretences, failure to maintain proper books of accounts, and operating non-core investment businesses without statutory approval.
All the suspects pleaded not guilty before the court.
Court Grants Bond
The court granted each accused person a bond of Sh200,000 with one surety.
The matter is scheduled for mention on June 22, 2026.
In a statement, the DCI said it remains committed to dismantling complex financial crime networks and protecting Sacco members from fraud and economic exploitation.
