Nineteen current and former officials of Metropolitan National Sacco have been arraigned in Nairobi over allegations of a Sh14 billion fraud scheme involving fictitious loans and irregular investments spanning nearly a decade.
The accused appeared before the Milimani Law Courts on Tuesday where they denied multiple charges linked to alleged financial misconduct, including conspiracy to defraud, false accounting, and stealing by directors. The court released each suspect on a Sh200,000 bond with one surety, and the matter will be mentioned on June 22, 2026.
According to the Directorate of Criminal Investigations (DCI), the case stems from a request by the Sacco Societies Regulatory Authority, which flagged suspected embezzlement and governance failures within the institution.
Investigators say a detailed probe uncovered what they described as coordinated manipulation of financial records, diversion of members’ savings, and unlawful loan disbursements carried out over several years.
The DCI alleges that between 2012 and 2021, officials engineered fictitious loan entries amounting to Sh13.48 billion, concealed through falsified accounting records and irregular financial reporting systems.
A second alleged scheme involved the creation and operation of an Investment Cooperative Society, which investigators claim was used as a front to channel Sacco funds into questionable land and investment deals in Kitengela. Through the arrangement, about Sh750.7 million is said to have been misappropriated.
“The Sacco officials acted in concert, manipulating records, irregularly transferring funds, and failing to account for members’ money entrusted to them,” the DCI said, describing the operation as a “web of deceit.”
Those charged include Christopher Kahuno, Samuel Ndungu, John Kimani, James Kamau, Patrick Kimando, Francis Kamau, Benson Mwangi, Paul Wathika, Geoffrey Kamau, Duncan Chege, Francis Wachiuru, George Mwihia, Daniel Lee, Joseph Gachunga, Boniface Muthama, Rosemary Njeri, Edward Duncan, Lucy Njambi, and James Mutaiga.
The agency further accused them of operating non-core investment ventures without approval and failing to maintain proper financial records, contrary to statutory requirements.
The DCI said it remains committed to dismantling financial crime networks and protecting Sacco members who rely on the institutions for savings and credit services.