Nineteen suspects linked to a massive Sh14 billion Sacco fraud scandal have been arraigned before the Milimani Law Courts following investigations by detectives from the Directorate of Criminal Investigations (DCI) Headquarters Investigations Bureau.
The suspects are accused of orchestrating an elaborate financial fraud scheme that led to the loss of billions of shillings belonging to Sacco members over a period spanning nearly a decade.
The case emerged after the Sacco Societies Regulatory Authority (SASRA) formally requested the DCI to investigate allegations of financial misconduct and embezzlement involving senior Sacco officials.
Investigations Reveal Widespread Fraud and Abuse of Office
According to investigators, the inquiry uncovered a coordinated scheme in which Sacco officials allegedly breached their fiduciary responsibilities by manipulating financial records, transferring members’ funds irregularly, unlawfully disbursing loans, and failing to account for substantial sums entrusted to them.
Detectives established that the fraud involved two interconnected schemes that resulted in losses amounting to more than Sh14 billion.
Fictitious Loans Worth Sh13.4 Billion Identified
The first scheme involved the manipulation of loan disbursement figures between 2012 and 2021.
Investigators say Sacco officials allegedly created fictitious loans amounting to Sh13,483,350,322 through fraudulent accounting practices designed to conceal the transactions.
The DCI described the operation as a sophisticated financial cover-up that was sustained over several years.
Fake Investment Cooperative Used to Divert Funds
The second fraudulent scheme centred on the alleged illegal formation and operation of an Investment Cooperative Society Limited.
Authorities claim the entity was used as a front to divert Sacco funds under the pretext of land acquisition and investment opportunities in Kitengela.
Through the scheme, officials allegedly misappropriated Sh750,766,304 meant for Sacco investments.
Former and Current Sacco Officials Charged
The accused persons include former and current Sacco officials identified as 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 of a company, fraudulent false accounting, obtaining credit by false pretences, failure to maintain proper books of accounts, and operating non-core investment businesses without statutory approval.
Suspects Deny Charges, Released on Bond
Appearing before the Milimani Law Courts, all nineteen suspects pleaded not guilty to the charges.
The court granted each accused person a bond of Sh200,000 with one surety.
The matter is scheduled for mention on June 22, 2026.
The agency stated that investigations into financial fraud and abuse of public trust remain a priority as authorities seek to restore confidence in the cooperative sector.