The High Court has temporarily blocked the prosecution and arrest of three leading Kenyan bank chief executives over allegations that they failed to report suspicious transactions linked to an alleged KSh363.4 million fraud scheme.
The executives are NCBA Group CEO John Gachora, KCB Group CEO Paul Russo and Co-operative Bank CEO Gideon Muriuki.
Justice Gregory Mutai issued conservatory orders suspending the criminal proceedings and plea-taking initiated by the Office of the Director of Public Prosecutions (ODPP) against the three executives.
The ODPP had sought to charge the bank chiefs over alleged failure to flag and report suspicious transactions connected to suspected proceeds of crime arising from the alleged theft of KSh363.4 million at First Assurance Investment Company Limited.
According to the prosecution, the three executives are accused of failing 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.
The case also involves NCBA, KCB and Co-operative Bank, alongside a former Member of County Assembly and other accused persons.
The matter came up before a Nairobi court after defence lawyers representing the three banks informed the court that they had obtained conservatory orders from the High Court barring the trial court from proceeding with the case.
The lawyers also told the court that the orders restrained the arrest or detention of some of the accused persons.
The Nairobi court has directed that the matter be mentioned on Wednesday to confirm service and verify the authenticity of the High Court orders staying the proceedings.
The conservatory orders temporarily halt the criminal proceedings against Gachora and the other executives as the legal challenge continues before the High Court.