By IP Correspondent
A multi-billion shilling Sacco fraud scandal exploded into the open on Tuesday after 19 suspects were arraigned before the Milimani Law Courts over the alleged loss of more than Sh14 billion in what investigators describe as a carefully orchestrated financial scam.
The suspects were hauled to court following months of investigations by detectives from the Directorate of Criminal Investigations Headquarters Investigations Bureau into allegations of massive embezzlement, fictitious loans and illegal diversion of Sacco members’ savings.
The explosive investigations were launched after the Sacco Societies Regulatory Authority raised the red flag over suspected financial irregularities within the Sacco.
According to detectives, the scandal exposed a deep-rooted fraud network allegedly engineered by both former and current Sacco officials who are accused of manipulating financial records, authorising irregular transactions and siphoning members’ funds through fraudulent schemes spanning nearly a decade.
Investigators say the first fraudulent scheme involved manipulation of loan disbursement records between 2012 and 2021, resulting in fictitious loans worth a staggering Sh13.48 billion.
In the second scheme, detectives uncovered what they termed as a bogus Investment Cooperative Society Limited allegedly used as a vehicle to loot Sacco funds.
Authorities claim over Sh750 million was diverted under the guise of land purchases and investment deals in Kitengela.
Those charged are 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.
The accused persons are facing a battery of charges, among them conspiracy to defraud, stealing by directors or officers, fraudulent false accounting, obtaining credit by false pretences and operating non-core investment businesses without statutory approval.
Drama unfolded in court as all the suspects denied the charges before the magistrate.
The court released each accused person on a bond of Sh200,000 with one surety of a similar amount ahead of the next mention on June 22, 2026.
The DCI has vowed to pursue masterminds behind complex financial crimes, warning that rogue officials exploiting cooperative societies will face the full force of the law.
Ends.
