Detectives from the Directorate of Criminal Investigations have arraigned 19 suspects linked to a massive Sacco fraud case. Investigators claim the scheme caused losses exceeding Ksh14 billion through fake loans and suspicious investments.
The suspects include former and current Sacco officials accused of financial misconduct and embezzlement. The DCI presented them before court on Tuesday, May 26, after lengthy investigations.
According to investigators, the suspects allegedly operated a sophisticated fraud network within the Sacco. Authorities believe the group manipulated records and diverted members’ funds over several years.
The investigation began after the Sacco Societies Regulatory Authority filed a formal complaint with the DCI. SASRA requested a probe into alleged financial irregularities inside the institution.
Detectives said the inquiry uncovered widespread abuse of office by Sacco officials. Investigators claim the suspects violated their fiduciary duties while managing members’ savings.
The DCI stated that officials worked together to manipulate financial records and conceal transactions. Authorities also accused them of approving irregular loans and unauthorized fund transfers.
According to the DCI, the suspects failed to account for huge amounts entrusted to the Sacco. Investigators believe the operation involved fictitious loans and fake investment activities.
The agency described the scheme as highly coordinated and sophisticated. Detectives said the suspects allegedly exploited internal systems to move money without proper accountability.
The case now adds to growing concerns over financial management within some cooperative societies. Many Sacco members across Kenya continue demanding stronger oversight and accountability measures.
The suspects will now face court proceedings as investigations continue. Authorities have not ruled out additional arrests in connection with the alleged fraud.
The DCI said it remains committed to protecting public funds and investigating financial crimes. Officials also urged financial institutions to strengthen internal controls against fraud schemes.
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