The Director of Public Prosecutions (DPP) has charged the NCBA, KCB and Co-op Bank CEOs with failing to report suspicious transactions linked to alleged proceeds of crime under Kenya’s anti-money laundering laws.
The three bank executives are accused of failing 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 appear before the Chief Magistrate’s Court on 11 August 2026 to take plea after summons were issued by the court.
The charges against the bank executives are linked to a separate case involving alleged theft of KSh363.4 million from First Assurance Investment Company Limited, where former nominated Member of the County Assembly (MCA) Salim Mohamed Busaidy served as a director alongside Lamu Governor Issa Abdalla Issa.
Former MCA Charged Over KSh363 Million First Assurance Theft
On 5 August 2026, prosecutors charged Busaidy with allegedly stealing KSh363,420,459 from First Assurance Investment Company Limited during the period between 18 May 2018 and 30 April 2024.
Deputy Director of Public Prosecutions Nora Otieno and Principal Prosecution Counsel Willy Momanyi told the court that Busaidy allegedly used his position as a director and his access to the company’s bank accounts held at NCBA Bank, KCB Bank and Co-operative Bank to withdraw company funds.
The DPP approved 120 charges against Busaidy, including 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 prosecution alleges that Busaidy forged the signature of his co-director, Lamu Governor Issa Abdalla Issa, on several company cheques, presenting them as authorised documents to facilitate withdrawals. Investigators allege that the transactions resulted in the loss of KSh363,320,459 from the insurance company.
The prosecution further claims that Busaidy acquired KSh363,320,459 knowing that the funds represented proceeds of crime arising from the alleged theft. Busaidy denied all charges before Chief Magistrate Gethi Kibiru and was released on a KSh10 million bond with one surety of a similar amount or a cash bail of KSh3 million.
How the Alleged Fraud Scheme Worked
The case against the bank CEOs arises from allegations that the banks processed transactions linked to the alleged theft from First Assurance Investment Company Limited.
According to the prosecution, Busaidy allegedly exploited his access to the company’s bank accounts between May 2018 and April 2024 to withdraw funds through forged company cheques.
The alleged fraudulent cheques involved multiple transactions ranging from smaller amounts to hundreds of thousands of shillings, eventually accumulating to more than KSh363 million.
The prosecution contends that the repeated transactions created suspicious activity that should have been identified and reported by the financial institutions involved. The Directorate of Criminal Investigations (DCI) has also alleged that some of the funds were used to acquire luxury vehicles and other personal assets.
Charges against NCBA, KCB and Co-operative Bank CEOs
The DPP has accused the three bank executives of failing to report suspected proceeds of crime as required under POCAMLA.
Section 44 of the Act requires financial institutions to monitor transactions that are unusual, complex, large, or inconsistent with a customer’s known activities. Where a financial institution suspects that funds may be linked to criminal activity, the law requires the suspicious activity to be reported to the Financial Reporting Centre (FRC).
The prosecution alleges that the transactions involving First Assurance Investment Company Limited’s accounts should have raised suspicion requiring reporting under Kenya’s anti-money laundering framework.
Penalties under Kenya’s Anti-Money Laundering Law
If convicted, individuals charged under POCAMLA may face criminal penalties, including imprisonment and financial sanctions. Under Section 16(2) of POCAMLA, individuals convicted of offences under the Act may face imprisonment of up to seven years.
The court may also impose a personal fine of up to KSh2.5 million, or apply both imprisonment and a fine. Financial institutions found liable may separately face institutional penalties, including fines of up to KSh25 million and regulatory action.
Kenya’s Anti-Money Laundering Enforcement
The prosecution of bank executives comes as Kenya continues efforts to strengthen enforcement of anti-money laundering regulations.
Kenya was placed on the Financial Action Task Force (FATF) grey list in February 2024 after the global financial crime watchdog identified strategic deficiencies in the country’s anti-money laundering and counter-terrorism financing framework.
A June 2026 FATF review confirmed that Kenya remained on the grey list as authorities continued implementing reforms. The case involving the three bank CEOs marks a move by prosecutors to pursue individual accountability in alleged failures involving financial institutions.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.