Editor's Review

The ex-MCA is accused of allegedly stealing Ksh363 million by forging a director's signature.

The Directorate of Public Prosecutions (DPP) confirmed that it had charged the Chief Executive Officers (CEOs) of NCBA Bank, KCB Bank and Co-operative Bank in connection with an alleged Ksh363 million fraud.

In a statement issued on Wednesday, August 5, the DPP explained that the three CEOs were arraigned in court over failure to report a former nominated Member of County Assembly (MCA) who deposited large sums of money suspected to be proceeds of crime.

The ex-MCA, who was also charged in court, is accused of allegedly stealing the Ksh363 million from First Assurance Investment Company.

"The DPP has charged the Chief Executive Officers of NCBA Bank, KCB Bank and Co-operative Bank 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.

"The prosecution, in relation to this case, also charged a former nominated MCA with allegedly stealing Ksh. 363,420,459 from First Assurance Investment Company Limited, where he served as a director alongside Lamu Governor Issa Abdalla Issa," the statement read in part.

Read More

  1. NG-CDF Official, Contractor Convicted in Ksh19 Million Malindi Graft Case
  2. Army Major in Triple Murder Found Guilty
  3. KCB Bank Mourns Kenyan Staff Member Killed in South Sudan Plane Crash

A file photo of the accused in a Ksh363 million fraud scheme.

The Prosecution confirmed that the three CEOs are expected to take their plea before the Chief Magistrate’s Court on 11th August 2026, following summons issued by the court.

According to Deputy DPP Nora Otieno and Principal Prosecution Counsel Willy Momanyi, the accused allegedly stole the funds between May 18, 2018 and April 30, 2024.

They stated that the suspect exploited 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 Court heard that the accused allegedly forged Governor Issa's signature on numerous company cheques and falsely presented them as duly authorised, thus facilitating the unlawful withdrawal of company funds.

"The DPP approved 120 charges against the accused, comprising 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 statement continued.

The prosecution told the court that the accused acquired KSh363,320,459, knowing the money constituted proceeds of crime arising from the alleged theft.

The former nominated MCA pleaded not guilty before Chief Magistrate Gethi Kibiru. He was released on a bond of Ksh10 million with one surety of a similar amount or a cash bail of Ksh3 million.