The Office of the Director of Public Prosecutions (ODPP) has charged the Chief Executive Officers of NCBA Bank, KCB Bank and Co-operative Bank with failing to report suspected proceeds of crime in connection with an alleged KSh363 million fraud case.
In a statement on Wednesday, August, ODPP said the three CEOs were 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.
“The three CEOs are expected to take a plea before the Chief Magistrate’s Court on 11th August 2026, following summons issued by the court,” ODPP stated.
The charges arise from a separate case in which prosecutors also arraigned a former nominated Member of the County Assembly (MCA) accused of stealing KSh363,420,459 from First Assurance Investment Company Limited, where he served as a director alongside Lamu Governor Issa Abdalla Issa.
The accused allegedly stole the funds between May 18, 2018, and April 30, 2024, by exploiting his position as a company director and his access to the firm’s bank accounts held at NCBA Bank, KCB Bank and Co-operative Bank.
According to the ODPP, the suspect allegedly forged the signature of Governor Issa on numerous company cheques, falsely presenting them as duly authorized to facilitate the unlawful withdrawal of company funds.
Following a review of the evidence, the DPP approved 120 charges against the accused.
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 former MCA denied all the charges when he appeared before Chief Magistrate Gethi Kibiru and was released on a KSh10 million bond with one surety of a similar amount, or a cash bail of KSh3 million.
The criminal proceedings against the former MCA will run alongside the case against the three bank CEOs, who are expected to answer to charges relating to their alleged failure to report suspicious financial transactions.
