The Directorate of Criminal Investigations (DCI) presented 19 individuals before the Milimani Law Courts in connection with a Sacco fraud case involving more than Ksh14 billion.
In a statement, the DCI said the suspects were linked to alleged financial misconduct uncovered after the Sacco Societies Regulatory Authority requested an investigation into suspected embezzlement and irregular financial activities involving Sacco officials.
“The matter came to light after the Sacco Societies Regulatory Authority submitted a formal request to the DCI, urging an inquiry into serious allegations of financial misconduct and embezzlement by Sacco officials,” the directorate stated.
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According to investigators, the probe revealed coordinated actions by officials who allegedly breached their fiduciary duties by manipulating financial records, irregularly transferring members’ funds, disbursing unlawful loans, and failing to account for substantial amounts entrusted to them.
The investigation further identified two major fraud schemes, with the first involving prolonged manipulation of loan disbursement records between 2012 and 2021, resulting in fictitious loans totaling Ksh13,483,350,322.
“Two interconnected fraudulent schemes were identified. The first saw a decade-long manipulation of loan disbursement figures from 2012 to 2021, leading to fictitious loans totaling an astonishing Sh13,483,350,322,” DCI noted.
The second scheme involved the alleged creation and operation of an Investment Cooperative Society Limited, which investigators described as a front used to divert Sacco funds.
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Through the arrangement, Ksh750,766,304 was allegedly misappropriated under the pretext of land acquisition and investment activities in Kitengela.
“This was a facade that allowed officials to divert Sacco funds, misappropriating Sh750,766,304 under the guise of land acquisition and investment opportunities in Kitengela,” the statement read.
19 Charged in Ksh14 Billion Fraud Scandal
According to the DCI, the suspects include former and current Sacco officials who now face multiple charges, including conspiracy to defraud, stealing by directors or officers, fraudulent false accounting, obtaining credit by false pretenses, failure to maintain proper books of account, and operating non-core investment activities without approval.
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Further, the investigative unit stated that all 19 accused persons denied the charges when they appeared before the court. They were released on a bond of Ksh200,000 each with one surety, and the matter was scheduled for mention on June 22, 2026.
The Directorate stated that it remains committed to dismantling complex financial crime networks across the country and that the investigations aim to strengthen accountability within financial institutions.
The DCI further noted that it is focused on protecting millions of Kenyans who depend on Saccos for savings, access to credit, and financial stability.
