DBK Bank chairman Michael Nyachae charged with stealing Sh1.2million from family business

Development Bank of Kenya (DBK) Chairman Michael Moragia Nyachae has been charged with stealing Sh1.2 million from Sansora Group Limited, a company associated with his family.

Nyachae, 62, appeared before the Milimani Law Courts after the Director of Public Prosecutions (DPP) authorised his prosecution over allegations that he stole Sh1,226,036 belonging to the company.

According to the charge sheet, Nyachae allegedly committed the offence on diverse dates between March 28, 2019 and September 28, 2021, in Kisii County.

“Michael Moragia Nyachae, diverse dates between 28th March, 2019 and 28th day of September, 2021 at Kisii County within the Republic of Kenya, stole Ksh1,226,036,” the charge sheet states.

Nyachae, a son of the late Cabinet minister and businessman Simeon Nyachae, was arrested on Thursday at Chepilat in Bomet County and detained at Kileleshwa Police Station.

The arrest followed a decision by DPP Renson Ingonga to prosecute him after reviewing an investigation file arising from a complaint by Sansora Group Limited.

The criminal case follows a three-year investigation by the Directorate of Criminal Investigations (DCI), which recommended that Nyachae face additional charges, including money laundering.

However, the DPP directed investigators to conduct further investigations into the proposed charges under the Proceeds of Crime and Anti-Money Laundering Act and forgery laws, citing gaps in the evidence.

“I have noted that there are gaps that need to be addressed as appertains to the charges that were to be instituted against the suspect under the Proceeds of Crime and Anti-Money Laundering Act No. 9 of 2009 and Forgery,” the DPP said.

The prosecution did not oppose Nyachae’s release on bail. Principal Magistrate Caroline Nyaguthii granted him a Sh200,000 bond or Sh50,000 cash bail.

The case will be mentioned on September 29, 2026.

Moragia is not new to controversy.

In February 2026, the High Court allowed shareholders of companies associated with the Nyachae family to pursue a derivative suit against Michael Moragia Nyachae and fellow director Jamaludin Shamsudin Alibhai Rajwani over an alleged fraudulent sale of a prime property in Kisii at Sh8million but had a market value of Sh35million.

Earlier this year, Justice Freda Mugambi ruled that the shareholders had demonstrated sufficient grounds to institute the case on behalf of Sansora Bakers & Confectioneries Limited and its parent company, Sansora Investment Ltd, saying the claims raised issues touching on the interests of the companies.

At the heart of the dispute is a property allegedly sold for Sh8 million in May 2021, despite claims by the shareholders that its market value was more than Sh35 million.

The shareholders accuse Nyachae and Rajwani of mismanaging the companies, treating them as personal enterprises and sidelining other investors from major corporate decisions.

Court documents allege that the property was deliberately undervalued and sold without adequate transparency at a time when members of the Nyachae family were mourning the death of the companies’ founder.

The property was allegedly transferred to Pine Tree Real Estate LLP, a company the shareholders claim is owned by Rajwani’s nephew.

Justice Mugambi ordered the directors to produce the sale agreement, transfer documents and records showing how the proceeds were received and utilised. The court also barred further sale, transfer or charging of the property pending determination of the dispute.

The directors were further ordered to provide shareholders with company accounts, bank statements, audited financial statements and proof of payments within 30 days.

In his response, Nyachae, who currently chairs the Development Bank of Kenya, acknowledged weaknesses in the companies’ corporate procedures. He said the bakery had historically operated without formal written resolutions but maintained that directors acted in good faith.

The shareholders are seeking recovery of the property and disqualification of the two directors.

The case adds another layer to the controversies surrounding Michael Nyachae, whose involvement in the family’s business affairs has increasingly come under scrutiny as disputes over corporate governance and management continue to play out in court.