DCI Arrests 3 Suspects Behind Ksh22.4 Million Sacco Fraud

Detectives from the Directorate of Criminal Investigations (DCI) have arrested three suspects in connection with siphoning off Ksh22.4 million from a savings and credit cooperative society (SACCO).

In a statement on Thursday, June 11, DCI said the suspects manipulated the SACCO’s computerized financial systems and diverted the millions. 

“Detectives from Imenti North have arrested three individuals implicated in a fraud scheme that siphoned off more than Sh22.4 million from a savings and credit cooperative society (SACCO). 

“The investigation uncovered a complex fraud network, where the criminals wielded technology as their weapon, manipulating the SACCO’s computerised financial systems to enrich themselves at the expense of hardworking members,” DCI said. 

According to the DCI, Allan Karani, an ICT Assistant Officer at the SACCO, masterminded the 22.4 million fraud. 

The investigations also revealed that bank accounts associated with Tony Mwenda, Sharon Kendi, Brivin Dentel, and Mawingu Plus Limited were allegedly used to receive and withdraw the stolen funds.

The breakthrough in the case came on June 4, 2026, when detectives arrested Tony Mwenda and obtained custodial orders to facilitate further investigations.

On Wednesday, June 10, detectives carried out a coordinated operation that led to the arrest of Karani, Betty Kanana, and Sharon Kendi.

“Yesterday, June 10, 2026, detectives executed a well-planned operation, leading to the arrest of Allan Karani, Betty Kanana, and Sharon Kendi,” DCI said. 

During the operation, the DCI officers seized several mobile phones and a company laptop which have since been taken for forensic examination to unravel the full extent of this elaborate scheme. 

The three suspects are currently in police custody and awaiting arraignment in a court of law. 

This comes a month after 19 suspects were arraigned in court over a sophisticated fraud scheme that saw a SACCO lose over Ksh14 billion.

The matter came to light after the Sacco Societies Regulatory Authority (SASRA)submitted a formal request to the DCI to launch investigations into the scheme. 

The investigative agency noted that detectives uncovered two interconnected fraudulent schemes during the probe. 

The first scheme involved the manipulation of loan disbursement records over a nine-year period between 2012 and 2021, resulting in the creation of fictitious loans amounting to a staggering KSh13.48 billion.

The second scheme involved the irregular establishment and operation of an Investment Cooperative Society Limited, which was used as a vehicle to divert SACCO funds.

The SACCO officials allegedly misappropriated Ksh750.8 million under the pretext of acquiring land and pursuing investment opportunities in Kitengela.

The suspects appeared before the Milimani Law Courts and pleaded not guilty to the charges and were granted a bond of Ksh200,000 with one surety each.