Former MCA implicated in Sh363million fraud as bank CEOs face charges
The DPP has approved charges against the CEOs of NCBA Bank John Gachora, Paul Russo of KCB Bank and Co-operative Bank CEO Gideon Muriuki for allegedly failing to report suspicious transactions linked to the movement of the disputed funds.
A former nominated Member of the County Assembly (MCA) is at the centre of an alleged Sh363.4 million fraud scheme involving First Assurance Investment Company Limited, with the case now widening to the chief executives of NCBA Bank, KCB Bank and Co-operative Bank.
Salim Mohamed Busaidy, a former director of First Assurance Investment Company Limited, is accused of exploiting his position and access to the company’s bank accounts to facilitate the alleged theft of Sh363,420,459 between May 18, 2018 and April 30, 2024.
The investigations have also placed the banking sector under scrutiny.
The Director of Public Prosecutions (DPP) Renson Ingonga has approved charges against the CEOs of NCBA Bank John Gachora, Paul Russo of KCB Bank and Co-operative Bank CEO Gideon Muriuki for allegedly failing to report suspicious transactions linked to the movement of the disputed funds.
The three executives face charges of 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 (POCAMLA). They have been summoned to appear before the Chief Magistrate’s Court on August 11 to take plea.
The prosecution is not alleging that the bank CEOs participated in the theft.
Instead, the case centres on whether transactions linked to the movement of the money were sufficiently suspicious to trigger mandatory reporting obligations under Kenya’s anti-money laundering laws.
Investigators are expected to rely on financial records and transaction trails to establish how the Sh363.4 million was withdrawn and moved through the three banks, and whether the transactions should have prompted suspicious-transaction reports.
The three CEOs are expected in court next week on August 11, 2026 when they will take plea and pre-trial directions are issued. The case places the alleged fraud, the role of the former director and the banks’ statutory obligations under scrutiny.
The ODPP has reiterated that it will prosecute economic and financial crimes impartially and in accordance with the Constitution and the law.
Investigators from the Directorate of Criminal Investigations (DCI) Financial Investigations Unit allege that Busaidy conspired with other suspects who have not been charged to siphon the company’s funds through accounts held at the three banks.
The alleged fraud centred on forged company cheques. Investigators say Busaidy forged the signature of his fellow director, Lamu Governor Issa Abdalla Issa, on numerous cheques and presented them as genuine authorisations to withdraw the company’s money.
The funds were allegedly diverted and used to acquire motor vehicles and other assets.
“The prosecution’s emerging case paints a picture of an alleged fraud built around access, forged authorisation and movement of funds through established banking channels,” the investigation account states.
Following a review of the investigation file, the Director of Public Prosecutions (DPP) approved 120 charges against Busaidy.
They 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.
Busaidy has been arraigned and denied the charges. The court released him on a Sh10 million bond with one surety of a similar amount, or an alternative cash bail of Sh3 million.
He was ordered to surrender his passport, obtain court permission before travelling outside the country and refrain from interfering with witnesses.
