How a cunning KIKUYU man defrauded his employer of Ksh 89.5 million

Saturday, October 24, 2026 - An investigation into alleged insider fraud, digital manipulation, and suspicious financial transactions has led to the arrest and arraignment of a former Credit Control Officer at an insurance company, Bernard Kariuki Ngugi, over the suspected theft of KSh 89,579,274 from his former employer.

Investigations by detectives from the Banking Fraud Investigations Unit (BFIU) established that between 2018 and November 2025, the suspect exploited his privileged access to the company’s financial systems to orchestrate the diversion of millions of shillings through three companies: Auris General Merchants Ltd, Donbitz Global Limited and Pedram Global Limited.

According to investigators, the three entities had no legitimate business relationship with the insurance company and were not entitled to receive the payments, raising questions about how they were introduced into the company’s payment system.

Investigators established that the scheme involved manipulating the company’s financial systems to introduce the three companies into the payment chain, paving the way for the diversion of corporate funds.

A total of KSh 35.27 million was channelled through Auris General Merchants Ltd, KSh 32.68 million through Donbitz Global Limited and a further KSh 21.63 million through Pedram Global Limited.

Detectives also established that withdrawals and transfers were made in circumstances designed to conceal the origin and movement of the funds.

Following the investigations, the file was forwarded to the Office of the Director of Public Prosecutions (ODPP), which concurred with the recommendation to charge the suspect with theft by servant, money laundering and other related offences.

Ngugi was subsequently traced and arrested in Nairobi before being arraigned at Milimani Law Courts on Friday, October 23, 2026.

He pleaded not guilty to all the charges and was released on a bond of KSh 2 million, with an alternative cash bail of KSh 800,000.

The case is scheduled for a pre-trial mention on November 10, 2026.

The Directorate of Criminal Investigations (DCI) reiterated its commitment to pursuing complex financial crimes, following the money trail and holding accountable those suspected of abusing positions of trust for personal gain.