NAIROBI, Kenya – Four individuals accused of orchestrating a multi-billion-shilling fraud at the Kenya Union of Savings and Credit Co-operatives (KUSCCO) will remain in custody until Tuesday, February 18, when the court will determine their bail terms.
George Magutu Mwangi, Mercy Muthoni Njeru, George Ochola Owino, and Jackline Pauline Atieno Omolo appeared before the Milimani Law Courts on Friday, facing charges that include conspiracy to defraud, theft by company directors, and falsification of documents.
Meanwhile, the court has issued summons for former KUSCCO Managing Director George Otieno Ototo, requiring him to appear for plea taking on the same day his co-accused await their bail ruling, according to a statement from the Directorate of Criminal Investigations (DCI).
The arrests were carried out on Thursday, with three of the suspects apprehended in Nairobi, while Magutu was arrested in Nyeri.
Their detention follows a forensic audit report handed over to the police earlier this week by Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya.
The audit, conducted by PricewaterhouseCoopers (PwC), revealed large-scale financial irregularities at KUSCCO, including Ksh.3.7 billion in non-performing loans, inflated profits amounting to Ksh.797.9 million over six years, and irregular commission payments totaling Ksh.2.7 billion.
Authorities are intensifying investigations into the scandal, which has rocked the cooperative sector, raising concerns over financial governance and accountability within savings and credit institutions.
More details are expected to emerge when the accused return to court next week.
