By Valentine Omondi
The Director of Public Prosecutions (DPP) has approved criminal charges against the three Chief Executive Officers (CEOs) of Kenya’s leading banking institutions – NCBA Bank, KCB Bank and Co-operative Bank – for allegedly failing to report suspicious financial transactions linked to the theft of Sh363.4 million from First Assurance Investment Company Limited.
The Office of the Director of Public Prosecutions (ODPP), in a statement issued on Wednesday, said the three bank chief executive officers will 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 are expected to take plea before the Chief Magistrate’s Court on August 11, 2026, after the court issued summons.
The charges stem from investigations into the alleged theft of Sh363,420,459 from First Assurance Investment Company Limited, a case that has also seen the prosecution of the company’s former director and former nominated MCA, Salim Mohamed Busaidy.
Busaidy appeared before Chief Magistrate Gethi Kibiru on Wednesday, August 5, where he denied 120 criminal charges arising from the alleged theft. The prosecution was led by Deputy Director of Public Prosecutions Nora Otieno and Principal Prosecution Counsel Willy Momanyi.
According to the prosecution, Busaidy served as a director of First Assurance Investment Company Limited alongside Lamu Governor Issa Abdalla Issa. Investigators allege that he exploited his position and access to the company’s accounts held at NCBA Bank, KCB Bank and Co-operative Bank to siphon the funds.
The prosecution further alleges that Busaidy forged Governor Issa’s signature on numerous company cheques, enabling the unlawful withdrawal of the money from the firm’s bank accounts.
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.
The charges against the three bank CEOs are separate from those facing Busaidy but arise from the same investigations. Prosecutors contend that the bank executives failed to report transactions suspected to involve proceeds of crime, despite obligations imposed on financial institutions under Kenya’s anti-money laundering laws.
Under POCAMLA, banks and other reporting institutions are required to monitor customer transactions and promptly notify the Financial Reporting Centre whenever they detect activities that may involve money laundering or other criminal conduct. Failure to report such transactions constitutes a criminal offence.
The prosecution of the bank CEOs is expected to test the extent of accountability placed on senior executives in Kenya’s banking sector, particularly regarding compliance with anti-money laundering regulations. It also underscores the government’s renewed focus on enforcing financial reporting obligations and combating economic crimes.
The case is expected to attract significant public attention as it involves senior executives of three of Kenya’s largest commercial banks and one of the country’s most substantial alleged corporate fraud cases. The proceedings against the bank CEOs will commence on August 11, while the criminal case against Busaidy continues before the Chief Magistrate’s Court.
