The Director of Public Prosecutions (DPP) has charged the chief executive officers of NCBA Bank, KCB Bank and Co-operative Bank with failure to report suspected proceeds of crime in connection with an alleged Ksh363 million fraud scheme.
According to the DPP, the three bank CEOs have been charged with failure 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.
They are expected to take plea before the Chief Magistrate’s Court on 11th August, 2026, following summons issued by the court.
In the same case, prosecutors also charged a former nominated Member of the County Assembly (MCA) over the alleged theft of Ksh363,420,459 from First Assurance Investment Company Limited, where he served as a director alongside Lamu Governor Issa Abdalla Issa.
Deputy Director of Public Prosecutions Nora Otieno and Principal Prosecution Counsel Willy Momanyi told the court that the accused allegedly stole the money between May 18, 2018, and April 30, 2024, by exploiting his position as a director and his access to the company’s bank accounts held at NCBA Bank, KCB Bank and Co-operative Bank.
The DPP said it approved 120 charges against the former MCA after reviewing the evidence.
The charges include three counts of conspiracy to defraud, two counts of stealing, 114 counts of making a document without authority and one count of acquisition of proceeds of crime.
The prosecution alleges that the accused forged the signature of his co-director, Governor Issa Abdalla Issa, on numerous company cheques and falsely presented them as duly authorised to facilitate the unlawful withdrawal of company funds.
The DPP further contends that the accused knowingly acquired Ksh363,320,459, being proceeds of crime arising from the alleged theft.
The former MCA denied the charges before Chief Magistrate Gethi Kibiru and was released on a bond of Ksh10 million with one surety of a similar amount or an alternative cash bail of Ksh3 million.
