The Office of the Director of Public Prosecutions has charged the Chief Executive Officers of NCBA Bank, KCB Bank and Co-operative Bank over their alleged failure to report suspicious transactions linked to a Ksh363.4 million fraud scheme.
According to a statement from the DPP, the three bank chiefs 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. They are expected to take plea before the Chief Magistrate’s Court on August 11, 2026, following summons issued by the court.
In the same case, prosecutors charged former nominated Member of the County Assembly Salim Mohamed Busaidy with allegedly stealing 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 Busaidy allegedly stole the funds between May 18, 2018 and April 30, 2024, exploiting his position as a director and his access to the company’s accounts held at the three banks.
Following a review of the evidence, the DPP approved 120 charges against Busaidy, 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.
Prosecutors allege that Busaidy forged the signature of his co-director, Governor Issa, on numerous company cheques, presenting them as duly authorised to facilitate unlawful withdrawals. Investigators say some of the money was used to acquire motor vehicles and other assets. The DPP further contends that Busaidy knowingly acquired Ksh363,320,459 in proceeds of crime arising from the alleged theft.
Busaidy pleaded not guilty before Chief Magistrate Gethi Kibiru and was released on a bond of Ksh10 million with one surety of a similar amount, or a cash bail of Ksh3 million. As part of his bond terms, he was ordered to surrender his passport, seek court permission before travelling abroad, and refrain from contacting witnesses.
The court also issued summons to the three bank CEOs, who were absent during Wednesday’s proceedings. The matter will be mentioned on August 11, 2026, for their appearance and for pre-trial directions as investigations continue.
