Detectives from the Directorate of Criminal Investigations (DCI) have arrested an accountant suspected of orchestrating a multimillion-shilling fraud at a Savings and Credit Cooperative Society (SACCO). The suspect, a former accountant, was apprehended by the Banking Fraud Investigation Unit (BFIU) for transactions totaling Ksh 16 million. Investigations continue to identify other involved parties.
Detectives from the Directorate of Criminal Investigations (DCI) have arrested a former accountant at a Savings and Credit Cooperative Society (SACCO) on suspicion of masterminding a fraud that resulted in losses exceeding Ksh 16 million. In a statement released on Saturday, February 15, 2026, the DCI announced that the Banking Fraud Investigation Unit (BFIU) apprehended the suspect. "An accountant has been apprehended for masterminding a fraudulent scheme that led to a sacco lose over Ksh16 million, thanks to meticulous investigations by detectives from the Banking Fraud Investigation Unit (BFIU)," the detectives stated.
According to the DCI, the suspect authorized cheque payments from members' accounts in collusion with external accomplices, causing an initial loss of Ksh 6,852,166. Investigators later uncovered additional fraudulent transactions amounting to Ksh 9,161,000, also overseen by the suspect, bringing the total loss to the SACCO to Ksh 16,013,166. Preliminary reports indicate the suspect did not act alone, conspiring with a businessman who is a director of a construction company, whose cheques were fraudulently processed and cashed.
The funds were channeled into accounts belonging to the businessman and other SACCO members. As part of the scheme, a total of 58 cheques were issued, cleared, and deposited without trace. Investigators noted that the cheques were never recorded in the SACCO's cheque ledger, indicating a deliberate attempt to conceal the fraud, while forensic analysis links the suspect to forged withdrawal slips used to siphon off part of the funds.
The arrest follows the January 17 apprehension of the businessman linked to the fraud, as detectives intensify efforts to apprehend other suspects. The accountant will remain in custody awaiting arraignment in court on Monday. This arrest occurs amid increased scrutiny of SACCO governance in Kenya. The government recently ordered a fresh inquiry into the Kenya Union of Savings and Credit Cooperatives (KUSCCO) due to concerns over management and financial oversight. The inquiry will examine internal operations, governance practices, and the conduct of current and past management committees, signaling the state's aim to restore accountability within SACCOs.