Kenya Insights

Tag: Directorate of Criminal Investigations (DCI)

  • Police Sacco Seeks To Stop DCI From Probing Fraud Allegations

    Police Sacco Seeks To Stop DCI From Probing Fraud Allegations

    Police Sacco has moved to court seeking to block the Director of Criminal Investigations (DCI) from probing claims of embezzlement of funds against its board directors.

    The deposit taking Sacco sought High Court through lawyer Cecil Miller to restrain the DCI or its agents from arresting or charging the officials or the continued harassment or questioning the Board of Directors, pending hearing and determination of the case.

    The Sacco also sought orders to discharge directives issued by a Milimani magistrate court allowing the probe and for investigators to carry away certified copies various Sacco documents including list of the names of all members of the current board of directors.

    The DCI through investigating officer Inspector Duncan Maina had obtained warrant to investigate Sacco records, list of all tenders awarded to the Police Sacco from 1st January 2019 to 30th October 2024.

    The DCI was also allowed to obtain a list of corporate social responsibility projects implemented on the same period, Board of directors’ approval and all procurement documents relating to the purchase, installation and maintenance of the said M-Tawi system, audit reports among others.

    “Unless this Honourable Court intervenes urgently, the Sacco will suffer irreparable harm, including damage to its reputation as a leading financial institution, potential breaches of its confidentiality obligations to its members and a potential “bank run’ which will lead to the collapse of the DCI,” Miller submitted.

    Further, NPS DT Sacco wants the court to refer the complaint raised in the criminal application to the Sacco Societies Fraud Investigations Unit for investigation.

    Court documents stated that in November last year, a magistrate ordered the Sacco CEO Solomon Atsiaya to nominate an authorized person to provide a certificate of production of electronic evidence under Section 106B(4) of the Evidence Act

    The court further ordered that an authorized person be nominated to provide a witness statement as evidential account in support of the documents given to the DCI.
    The Sacco, however, argues that the inspection of the Sacco’s documents falls within the mandate of SASRA, under Section 48(2) and 49(1) & (3) of the Sacco Societies Act, which grants.

    “The Sacco Societies Fraud Investigations Unit (SSFIU), established by SASRA in 2020, is mandated to detect, prevent, and address fraudulent activities within SACCOs,” the Sacco said.

    Police Sacco submitted that there has been no compliance with sections 67 and 76 of the Sacco Societies Act CAP 490B as they offer a dispute resolution mechanism to be followed which has been bypassed by the current investigations.

    ” The Sacco’s rights to confidentiality and protection of its members’ personal and financial data under the Data Protection Act, 2019 are at risk of being breached, as the orders would lead to the unauthorized dissemination of sensitive information,” the Sacco added.

    The Sacco argues that due to its sensitive nature being a deposit taking institution, SASRA was the ideal place to carry out the investigations, to protect depositors’ funds.

    Through lawyer Miller, the Sacco argue that the order dated 28th November 2024 have far-reaching implications and expose the Sacco to potential operational disruption, financial instability, and erosion of public confidence and should therefore be discharged.
    Atsiaya pointed out that Section 49 of the Act has equipped SASRA with the power to authorize inspections of SACCOs and issue directives where non-compliance is identified under Section 50 of the Act.

    He added that via a letter dated 3rd September 2024, select members of the Sacco wrote to SASRA lodging a complaint therefore admitting the jurisdiction of SASRA as the investigating body.

    CEO Atsiaya adds that due to the sensitive nature of deposit taking institutions, the power granted to SASRA is ideal for protecting depositors and should be therefore allowed to undertake this investigation as per section 49(1) of the Act.
    “To allow investigations to continue as they are now will dangerously expose the institution and the depositors of the Sacco to grievous losses should the DCI proceed to effect the orders issued by court,” Atsiaya told the court.

    He further state that SASRA’S oversight is critical to ensuring compliance with the prudential standards prescribed under Section 48(2) of the Act, and any deviation from this process undermines the statutory framework established to regulate SACCOS.

    “The purpose of SASRA investigation is to safeguard the depositor’s interests and an investigation by the DCI will create a frenzy amongst the depositors causing a bank run,” adds Atsiaya.

    Atsiaya adds that the complainants have not exhausted all remedies available to them under the doctrine of exhaustion.

    He told the court he is well aware that the Directors of the Sacco are not immune or opposed to any investigations into the operations of the SACCO or their own conduct.

    “The said directors of the Sacco are ready to submit to the investigations within the prescribed procedures under the Sacco Societies Act, CAP 490(B),” court heard.

  • DCI Kenya Official X Account Hacked

    DCI Kenya Official X Account Hacked

    The official X (formerly Twitter) account of the Directorate of Criminal Investigations (DCI) Kenya has fallen victim to hackers, who appear to be using the platform to push a cryptocurrency scam.

    The account, which typically disseminates security and law enforcement updates, has been posting content promoting a dubious crypto scheme, alerting followers to potential fraud.

    The breach was noticed when the DCI Kenya account deviated from its usual posts, instead sharing details about a cryptocurrency investment opportunity.

    One of the messages posted on the account urged local media to support the launch of a blockchain project, while another promoted the distribution of tokens in exchange for likes and retweets.

    DCI confirms the hack

    However, the DCI seems to have regained control, as the posts have since been deleted.

    The DCI has since issued the following statement regarding the hack on their X account:

    “For some moment this evening, we experienced a cyber-attack on the DCI digital platforms (X and Facebook), but have since regained full control. During the short period, the cyber criminals who attempted to take over the accounts posted the information captured on the screenshot below.” The statement reads.

    During the brief period when the accounts were compromised, the hackers managed to post misleading information, which was captured in a screenshot and referenced in the DCI’s statement. The DCI explicitly clarified that this information was “FAKE” and did not originate from them.

    “The information is therefore FAKE and not from the DCI. A scrupulous interrogation into the criminal activity has been activated to bring to book the perpetrators.” It added.

    This marks another high-profile case of cybercrime in Kenya, following closely on the heels of a similar attack on the Kenya Broadcasting Corporation (KBC) account just last week.

    In the KBC incident, hackers not only took over the account but also swiftly changed the handle to “DeepseekOnSoI”, named after the AI chatbot DeepSeek, which mimics the functionality of well-known AI like ChatGPT. This rebranding was evidently an attempt to leverage the chatbot’s recognition for misleading potential investors.

    This incident is part of a growing global trend where high-profile social media accounts, including those on YouTube, X, and other platforms, are hijacked for similar fraudulent activities. Cybersecurity experts have long warned about the increasing sophistication of such scams, where attackers often rebrand accounts to impersonate well-known entities or celebrities to gain trust and credibility.

    Scammers would also hold the accounts until they’re paid. Ransomware is common especially with big corporates that are targeted by hackers and part with millions.

    How Crypto scams works

    According to cybersecurity trends, the attack method often involves phishing emails or malware designed to steal session cookies. This allows hackers to bypass even two-factor authentication measures. Once they gain control, the account is used to broadcast live streams or posts promising high returns on cryptocurrency investments. However, the funds ultimately disappear into the hands of the scammers.

  • Wife of Patient Found Dead with Slit Throat at KNH Speaks Out as Detectives Probe Shocking Murder

    Wife of Patient Found Dead with Slit Throat at KNH Speaks Out as Detectives Probe Shocking Murder

    For Susan Wanjiku, the past 24 hours have been a relentless nightmare, one that began with a phone call and has since spiraled into an abyss of grief and unanswered questions.

    Her husband, Gilbert Kinyua, was found brutally murdered in his hospital bed at Kenyatta National Hospital (KNH) on the morning of Friday, February 7.

    The 58-year-old, who had been receiving treatment for nearly two months, had his throat slit in what is now being investigated as a shocking and deeply troubling murder.

    “I was too shocked to speak when I saw him,” Susan recounted while speaking to reporters. “There was a pool of blood on the bed and his clothes. His neck was cut from side to side, and there were signs of struggle. It was as if the killer had time.”

    Susan Wanjiku, wife of Gilbert Kinyua, who was killed in Kenyatta National Hospital (KNH), is accompanied by her relatives as they follow the incident at the Hospital on February 8, 2025 [Boniface Okendo, Standard]
    Kinyua, a father of two, had been admitted to Ward 7B on the seventh floor of KNH since December 11, 2024, for treatment of bed sores and wounds.

    Susan, who had been her husband’s primary caregiver, last saw him on Tuesday, February 4, when she fed him blended beetroot and mango juice.

    “He told me to ask the doctors if he would need a grafting procedure. He was hopeful, asking me to bring ointment for his wounds and sending greetings to our sons,” she said.

    Unanswered Question and mounting probe

    The murder has raised serious questions about security at KNH, one of Kenya’s most prominent medical facilities.

    Susan expressed disbelief that such an attack could occur in a heavily guarded hospital. “How could nobody have heard anything? Not even the nurses at the station or other patients? In my view, this was an inside job,” she said.

    Kinyua was in Ward 7B, a section of the hospital that housed several other patients, including one who had become a trusted companion to him. A pastor had also introduced himself to the family, offering spiritual encouragement. Yet, despite these people around, no one seems to have witnessed the attack.

    Detectives from the Directorate of Criminal Investigations (DCI) are now probing the case, with a focus on a male patient who shared the same room as Kinyua. The patient, who is recovering from a mental illness, is expected to provide a statement once cleared by a psychiatrist. Investigators have also collected a kitchen knife found on the hospital’s first-floor roof, believed to be the murder weapon, for fingerprint analysis.

    KNH has launched an internal investigation and is cooperating with law enforcement. However, the lack of credible clues from CCTV footage and the absence of witnesses have complicated the case.

    A Family’s Search for Justice

    For Susan, the loss is unbearable. Married to Kinyua since 2011, she described him as a loving and kind man who dreamed of providing a stable life for his family. “He was a social man, full of life. He called me an angel,” she said, tears streaming down her face.

    Kinyua’s health struggles began in 2012, leading to multiple hospitalizations and diagnoses, including Parkinson’s and Fournier’s gangrene. Despite the challenges, Susan remained hopeful for his recovery. Now, she is left seeking answers and justice.

    “Who killed him? Why? And why didn’t anyone protect him at a facility I entrusted to?” she asked.

    As the investigation continues, Susan and her two sons, aged 11 and nine, are left to mourn a husband and father whose life was tragically cut short in a place meant for healing.

  • DCI Gives New Details On The Murder Probe Of Activist Raymond Otieno

    DCI Gives New Details On The Murder Probe Of Activist Raymond Otieno

    The Directorate of Criminal Investigations (DCI) said they’ve made significant strides in the investigation into the brutal murder of Molo political activist Richard Raymond Otieno, which occurred on the night of January 19, 2025, in Nakuru County, Elburgon Town.

    Otieno, who had spent his evening playing pool at Alpha’s Club, was ambushed near his home. The attack took place around 11 PM when he was just steps away from his gate. He suffered fatal injuries and was declared dead upon arrival at Elburgon Sub-County Hospital.

    The DCI’s Homicide Unit, alongside forensic experts, conducted an autopsy at the Kericho Referral Level 4 Hospital mortuary on January 24. This procedure was led by Chief Government Pathologist Johansen Oduor, with Dr. Grace Midigo assisting. The family of the deceased was represented by Dr. Ngurungu, while the Kenya National Human Rights Commission and the Independent Medico-Legal Unit also had representatives present to ensure transparency and integrity in the process.

    Preliminary findings from the autopsy detailed horrific injuries: two deep slash wounds at the back of the head, one stab wound on the forehead, and numerous signs of trauma including swollen eyelids, abrasions, and a skull fracture leading to severe brain hemorrhage. The cause of death was officially recorded as severe head injuries from combined blunt and sharp force trauma.

    Further forensic analysis is underway with samples taken for toxicological and DNA testing, which could provide additional clues to the identity of the assailants.

    The DCI has identified persons of interest including two local politicians as reported by local media and is actively recording statements from witnesses. In their latest press statement, the DCI emphasized their commitment to a meticulous and professional investigation, promising to bring those responsible to justice.

    The public has been urged to assist by sharing any relevant information with the police.

  • Detectives Discover Terror Links In Eastleigh Murder Suspect, ATPU Joins Probe

    Detectives Discover Terror Links In Eastleigh Murder Suspect, ATPU Joins Probe

    The Anti Terror Police Unit has joined a probe into the activities of murder suspect Hashim Dagane Muhumed.

    The team wants to understand if Hashim could have been a terror recruit operating in Nairobi.

    This is after it emerged he had traveled to Turkey for unknown mission. While there, he impersonated a Nairobi businessman and used his image to extort money from unsuspecting online users, investigations show.

    Hashim is believed to have been taken to Turkey by terrorist group for yet to be known mission.

    Teams are investigating how Hashim, a suspect in the murders of four women including a 12-year-old girl in Eastleigh, Nairobi acquired a Kenyan identity card, despite apparent evidence he may not be Kenyan.

    Appearing before the National Assembly’s Administration and Internal Affairs Committee, Inspector-General of Police Douglas Kanja confirmed that Hashim arrived in Kenya from Ethiopia recently and somehow obtained Kenyan documentation.

    He said a key red flag is that while Hashim claims to be a Kenyan, he does not speak Kiswahili, English, or any local dialect.
    “We had to get an interpreter when interrogating him.

    We want to know how the man acquired the Kenyan identity card,” Kanja told the committee.

    Investigations also revealed that Hashim has four wives, one of whom he is suspected of murdering.

    On November 3, a public tip-off led to Hashim’s arrest.

    It has emerged he and his mother were also suspects in a murder incident of their landlord in Ethiopia.

    They later left for Kenya after serving a brief sentence.

    While in Kenya, Hashim used clan elders and some political leaders in Nairobi to fraudulently obtain an ID.

    All those involved in the chain of acquiring the document have been identified and efforts to get them for explanation are ongoing, detectives said.

    “We believe some politicians and clan elders helped him to corruptly get the ID.

    We are getting them all,” said an investigator aware of the investigations.

    The issue has unveiled a lid in the cartel involved in issuance of identity cards at a fee exposing the country to many security dangers.

    “This is just one case and we understand there is a former chief leading in this evil mission.”

    Investigations so far suggest Hashim had posed to be from Garissa County’s Ogaden clan.

    He claimed to be from Sankuri, and of Yahye family, and that he was born on January 1, 2000 in Lago, Balambala.

    His issued ID number is fake and belongs to someone else, officials say.

    It has emerged his real name is Mahat.

    Immigration officials have revealed he had traveled to Turkey.

    Hashim is under probe over the murder of four women in the city. His motive is yet to be known but police believe he was a terrorism recruiter.

    Detectives are investigating past over mysterious disappearance and murder incidents with Hashim as the possible suspect.

    Investigations show Hashim wanted to marry his latest victim Deka Abdinoor Gorone.

    The body of Deka was found boiled with an unknown chemical and dumped at the Langata cemetery in Nairobi on October 31.

    The family of the woman has revealed the suspect and his victim were in love and wanted to marry her.

    was in love with the murder victim Deka.

    Hashim is also a prime suspect in the brutal murder of family members – a mother, daughter and 12-year-old niece – whose bodies were found dumped separately in Nairobi and Machakos.

    The family of Deka revealed Hashim had twice approached her parents, asking for their hand in marriage but his proposals were rejected.

    Hashim was from Ethiopia while Deka comes from Wajir in Kenya.

    Deka was deeply in love with Hashim, and her friends say she was heartbroken by her parents’ refusal to approve the marriage proposal.

    Even after the disapproval, Deka continued to see Hashim, spending time with him even as her friends and family expressed concerns.

    She did not know he was a killer as he had done the same in Ethiopia on his wife.

    Deka was raised in Wajir and later moved to Nairobi where she worked at a restaurant in Starehe’s Ushirika area.

    She was last seen on October 21, the same day the bodies of three Eastleigh women were found separately.

    Deka’s family grew worried when she did not return home and was absent from work.

    When the news of the discovery of the three bodies broke out, the family thought she was among the victims.

    They visited mortuaries to confirm that in vain.

    They continued to search for her.

    The family suspected that she was with Hashim, as he was the person she spent time with.

    On October 24, Deka’s family reported her missing at California Police Station.

    This triggered Hashim, a trained police officer in Ethiopia to throw a spanner to the saga.

    The family’s anxiety was temporarily relieved when they received a voice note from Deka, saying she had left the country but did not know where she was.

    They did not know this was the work of Hashim. He had done this to confuse them and slow down the search for Deka.

    In the recording, according to police and the family, she claimed to be safe.

    Hashim also contacted one of his relatives in a separate recording claiming he had been arrested and needed money.

    When the relative asked about Deka’s whereabouts he claimed she had “migrated”, suggesting she had left the country.

    Deka told her mother in the recording she was out of the country and was traveling to an undisclosed location by bus.

    In the message, Deka expressed her sorrow for not being able to care for her ailing mother, apologising for not providing the financial support her mother needed.

    ” I am currently on a bus heading to a place I do not know,” she said in the recording.

    Days later, according to the family, the woman’s mobile phone activities were erratic as for instance would be offline, only coming online occasionally to send voice messages.

    Deka’s mobile phone and some body parts are still missing.
    Hashim’s mobile phone, Deka’s ID and several other items were recovered in ongoing investigations.

    A second suspect was arrested in Eldoret over the murder of Deka.

    Police said Jared Mong’are was arrested and several exhibits among them a blood stained panga believed to be the murder weapon recovered.

    He was presented in Makadara law courts on Friday and police allowed to detain him for 21 days.

    Acting on intelligence leads, the detectives established that Mong’are, who was smoked from his hide out in Eldoret town, is the person who, not only handled all payment transactions relating to the clients stay at Lavington Valley Heights Apartment, but is also the person who drove them to the venue in a Toyota Vitz that has since been recovered at Ngara Civil Servants estate and towed to DCI headquarters for forensic examination.

    Also established is that the room where Hashim checked in with Deka was being operated as a short stay by a Kilimani-based businesswoman, who subleased the room from the apartment owner paying a monthly rent of Sh55,000.

    However, the owner issued a notice of rent increment starting November 2024, forcing the lady to send movers to move out her stuff on November 1, 2024.

    This was a day after cctv cameras captured the prime suspect (Hashim) leaving the room on October 31.

    The police summoned the owner identified as Alice Mbinya, who was investigatively interviewed at homicide offices to shed more light on the case in question.

    Mbinya indicated that the stuff she had moved from Valley Heights Apartment were still intact as packaged by the movers, and that some had been dropped at her residential house in Kilimani and the rest at her other business in Gatundu.

    She then led the detectives to her home where the said stuff was unpacked, therein discovering a handbag which she indicated was not part of her belongings.

    The same is believed to belong to the murdered victim.

    The search was furthered to Gatundu where the second batch of the stuff from the primary scene had been stored.

    Therein, a blood-stained panga and another set of exhibits similar to those recovered at Langata Cemetery were recovered.

    And just like at the house where the murder was committed, notable were the efforts made by the suspect to clean any traces of blood, but not perfectly enough by someone in a hurry.

    Detectives have also established that the prime suspect was handling the victim’s mobile phone or sim card, which he used to call her family members several times.

    A forensic trail of his communication took the officers back to Lang’ata cemetery, where they combed the entire area, discovering a phone stashed in a bag that also contained clothes resembling those seen won by Deka Abdinoor Gorone, his possible victim.

    A shopping receipt from a leading supermarket helped uncover the identity of Deka

    She had checked to the room she was killed before she went to a supermarket in the area for some shopping and paid using her mobile phone.

    She picked up a receipt and put in her pocket before leaving as captured on CCTV cameras there.

    At the scene, the police recovered a receipt the woman had been issued with at the supermarket.

    Her body and some few items had been wrapped in a black paper bag and dumped there.

    The receipt later proved crucial as it contained crucial details that have helped police identify the woman.

    The receipt included the supermarket’s name, time of purchase, and payment method, indicating payment via M-Pesa, the mobile number used and other details.

    Police visited the supermarket in Nairobi’s central business district and were able to retrieve crucial data on the customer who transacted it.

    They then traced the mobile phone number used to pay at the supermarket, registered under the name Deka Abdinoor Gorone.

    Police say an analysis of the woman’s mobile phone records revealed frequent communication with another phone number registered linked to Hashim.

    The team then traced her last movements to an apartment in Lavington where she is said to have spent time with Hashim.

  • Dig Into Flashy But Brutal World Of Fake Gold Kingpin

    Dig Into Flashy But Brutal World Of Fake Gold Kingpin

    Despite having two active court cases and being under investigation for various gold scam cases, flashy businessman Nahashon Otieno Angundha has continued with his fraudulent deals unabated.

    The suspect who appeared in court yesterday for one of the fraud cases has been implicated in another scam where the Directorate of Criminal Investigations (DCI) say he and his accomplices defrauded two Dubai-based businessmen.

    On Tuesday afternoon, detectives from the DCI’s Operations Support Unit (OSU) conducted three simultaneous operations at Angundha’s premises and arrested a total of 31 suspects.

    “Masquerading as genuine dealers in the precious metal, the suspects had on diverse dates in September 2024, paraded coated of-base metals to hoodwink and lure the two foreigners into a business deal, thereafter defrauding them of thousands of dollars,” the DCI said.

    According to the detectives, after several trips to the scammers’ offices in the country, the victims became suspicious following a botched transaction.

    During Tuesday’s operation, detectives discovered metal boxes containing fake gold nuggets and bars, four motor vehicles, several radio sets, fake stamps and authorisation certificates for various ministries in the government, among others. Another fake document in possession of the detectives is a Kenya Revenue Authority (KRA) receipt for payment of USD3,465 and East African Community (EAC)

    Mineral Export Certificate.

    “The suspected leader of the syndicate, Nashon Otieno Angudha, is a serial fraudster who has two similar active cases in court,” the DCI said.

    Yesterday, Angundha appeared at Milimani Law Courts for a mention of his case where he was charged with conspiracy to defraud and robbery with violence. Alongside Felix Ochieng Nyongesa and Jack Ouma Okwiri, he was charged with attacking an Australian and his Ugandan wife whom they had intended to defraud.

    Nashon Otieno Angudha

    The suspects had lured the couple into the country for a business deal in Nairobi. A contact person who identified himself as ‘Raymond from England’ had days earlier connected the couple with Nyongesa, who posed as the seller.

    Export deal

    On October 23 last year, he met the couple at the Village Market in Gigiri. He then sent a driver to pick them up and took them to their office along Glory Road in Runda. While at the office they allegedly attacked the couple, handcufed them and robbed them of USD60,000 (about Sh7.7 million) and jewellery valued at around USD30,000 (Sh3.8m).

    They were then driven to town and dumped at Rehema House from where they were rushed to hospital by members of the public.

    Detectives are also investigating another case where it is suspected that the suspect uttered a letter indicating that a gold sample was a 97.6 per cent gold. An independent probe revealed that the samples were 58.59 per cent copper.

    The probe further seeks to establish the relationship between the suspect and a company that allegedly sold 20kilogrammes of gold to a foreigner, Svend Christensen, through Malawi.

    In yet another case, the 28-year-old suspect was accused of taking part in scheme orchestrated to swindle a victim out of the millions by luring him to a purchase and export deal of 100 kilogrammes of gold to Dubai. Angudha then gave the victim nine gold bars as collateral.

    “It was after this exchange that the bars were subjected to a test at the Ministry of Mining, but none of them exhibited even a trace of gold element,” the DCI said.

  • Local Bank CEO Summoned by DCI and FRC Over Ksh. 13 Billion Money Laundering Allegations

    Local Bank CEO Summoned by DCI and FRC Over Ksh. 13 Billion Money Laundering Allegations

    In a high-profile investigation, a local bank in Kenya has been flagged by the Directorate of Criminal Investigations (DCI) and the Financial Reporting Centre (FRC) over alleged involvement in money laundering activities. This scrutiny has emerged due to revelations that the bank’s CEO enabled the movement of approximately Ksh. 13 billion, reportedly facilitated for citizens from Oman.

    Money Linked to Illicit Activities

    Reports indicate that the Ksh. 13 billion in question is suspected to be derived from criminal activities, including child trafficking, drug trafficking, and potentially even terrorism financing. The DCI and FRC, tasked with investigating and curbing financial crimes, have raised concerns about the local bank’s oversight mechanisms, suspecting it may have failed in its duty to detect and prevent suspicious financial activities.

    The involvement of the bank’s CEO in facilitating such large-scale transactions has intensified the probe. This individual, who has faced legal issues in the past for associations with various high-profile scandals, including links to billionaire businessman Jaswant Rai, will be summoned by the DCI later this month.

    Kenya Insights has information that the authorities are keen to understand the precise circumstances under which these vast sums moved through the bank’s channels and whether regulatory compliance procedures were deliberately bypassed.

    A Troubled History with Money Laundering Allegations

    This is not the first time the bank’s CEO has faced scrutiny from the authorities. Just last year, the same executive was arrested on similar money laundering allegations, a case that remains unresolved. The DCI, which had taken the CEO into custody, has yet to conclude its investigations, with no court proceedings having taken place so far. This extended delay in concluding the case has raised questions among observers and stakeholders, who are urging a swift conclusion to establish accountability.

    The DCI’s Broader Crackdown on Financial Crimes

    This investigation is part of a broader crackdown by Kenyan authorities on financial crimes, a priority for the country as it seeks to maintain financial transparency and attract international investors. In recent years, the DCI and FRC have been actively pursuing cases of financial misconduct, especially those involving large sums potentially linked to criminal activities. The ongoing scrutiny of the banking sector signals a stern warning to other institutions about the consequences of facilitating or failing to detect suspicious transactions.

    Public Reaction and Financial Sector Implications

    The case has sparked significant public interest, with concerns growing over the possible ramifications for the financial sector. Critics argue that the allegations against the CEO, if proven true, reflect a worrying loophole in financial oversight that could undermine trust in Kenyan banks. Financial analysts and governance experts have emphasized the need for stringent regulatory enforcement, highlighting that robust compliance measures are essential to safeguard the country’s banking sector from misuse by criminal entities.

    What’s Next?

    The CEO’s upcoming appearance before the DCI will likely shed more light on the mechanisms behind the transactions and the level of involvement, if any, of other bank employees or executives. Depending on the outcome of the ongoing investigations, the bank may face significant penalties, including possible changes to its leadership and stricter regulatory controls imposed by the Central Bank of Kenya.

    As authorities continue to monitor this case, financial institutions across Kenya are being reminded of the critical importance of anti-money laundering protocols. This investigation may lead to further reforms within the sector, aimed at bolstering Kenya’s financial integrity and reinforcing public trust in the nation’s banking system.

  • DCI Wants Politicians Allied To Gachagua And His Aides Charged For Planning, Financing Chaos During Gen-Z Protests

    DCI Wants Politicians Allied To Gachagua And His Aides Charged For Planning, Financing Chaos During Gen-Z Protests

    The Directorate of Criminal Investigations (DCI) has recommended charges against two Nairobi MPs and three others all allied to Deputy President Rigathi Gachagua after an inquiry into their alleged role in planning, mobilizing, and financing anti-government protests across the country in June 2024.

    In a letter to the Director of Public Prosecutions (DPP), DCI’s Abdallah Komesha said investigations established that Embakasi Central MP Benjamin Gathiru Mwangi, also known as Mejja Donk, and Embakasi North MP James Mwangi Gakuya participated in meetings at a Nairobi hotel where the protests were allegedly orchestrated.

    The MPs were summoned for questioning on July 31, 2024, and although they recorded statements, the DCI says they allegedly refused to hand over their mobile phones for forensic examination.

    The DCI is now seeking to charge Mwangi, Gakuya, George Theuri (former Embakasi West MP), Martin Ngunjiru Wambugu (former Nyeri Town MP), and Pius G. Munene with conspiracy to commit a felony, contrary to Section 393 of the Penal Code.

    The investigative agency also recommends charges of soliciting or inciting others to commit an offense, conspiracy to commit a felony, and money laundering against Mwangi.

    “Efforts are being made to obtain all financial data from FRC, Safaricom and banks where financial transactions were carried out,” said the DCI.

    The ODPP is analyzing the file before he decides on the matter, officials said.

    It comes in the wake of alleged plans to impeach the DP over among others violations of the laws.

    He has denied the claims on his aides and allies and termed it a political betrayal.

    President William Ruto had previously termed the Gen Z-led demos as a peaceful process that had been hijacked by organised criminals, promising to bring the financiers to book.

    Police are investigating their alleged role in financing the violent protests and looting of businesses in Nairobi and parts of Central Kenya.

    Police claim the individuals organized goons who raided shops and other premises to loot as Gen Z staged protests in the city.

    Dozens of people who participated in the protests, especially on June 25 have been charged with various charges.

    The protests were initially peaceful before goons invaded and started to loot property.

    The mainly Gen-Z-led demonstrations took the government by surprise, with President William Ruto declining to sign the bill.

    Discontent over the already high cost of living spiralled into nationwide protests, sparked by proposed tax hikes in the annual finance bill, which was however rejected.

    Protest organizers called for the police to be held accountable for the shooting incidents.

    More than 60 people were killed and 400 wounded in the chaos.

  • Fraud Claims Rock Business Registration Service (BRS), DCI Launch Probe

    Fraud Claims Rock Business Registration Service (BRS), DCI Launch Probe

    Detectives from the Directorate of Criminal Investigations (DCI) have launched investigations at the Business Registration Service (BRS) following reports of individuals losing their directorship and shareholding in companies through document forgery. According to sources within the DCI, the multimillion-shilling fraud is being carried out by outsiders with the help of corrupt employees within the BRS.

    Last month, DCI detectives were forced to obtain an arrest warrant for BRS Director General Kenneth Gathuma to compel him to release documents tied to the fraudulent activities. These activities have resulted in business owners losing shares worth hundreds of millions of shillings in various companies. In some cases, after falsifying documents at the BRS, the fraudsters changed company ownership and sold off properties worth millions.

    A senior detective from the DCI’s Serious Crime Unit stated, “We decided to intervene after receiving numerous complaints from business owners regarding the ongoing fraud at the BRS, where we suspect several employees are involved.”

    One such case occurred last year when Josiah Nicholas Mbathi Mwangi, a city businessman, was charged in court for forging documents to oust his co-directors from Nimba Technologies, a company specializing in the importation of surveillance and security products. Appearing before Senior Principal Magistrate Bernard Ochoi at the Milimani Law Courts, Mwangi faced five forgery charges, including falsifying an affidavit and company minutes, purporting them to be genuine and signed by his co-director, Njeri Kinuthia. Mwangi was also accused of forging a company share transfer deed and a resignation form, both of which he claimed were legitimate and signed by Njeri.

    Investigators believe that individuals like Mwangi submit these forged documents to accomplices at the BRS, where the changes in directorship and shareholding are swiftly processed. The fraudsters are so meticulous in their approach that they have been able to file annual returns at the BRS for years without the defrauded parties noticing.

    While acknowledging that DCI detectives have been stationed at their headquarters, the BRS has distanced itself from the fraudulent activities. BRS Director General Kenneth Gathuma stated that his team has always worked closely with state agencies, including law enforcement, providing them with necessary evidence and information to assist in investigations and court proceedings.

    Regarding the warrant of arrest issued on August 27, 2024, Gathuma mentioned that the BRS immediately engaged with DCI investigators to address the matter. He clarified that the Registrar of Companies acts based on information filed online at the BRS by authorized company representatives during any changes in shareholding or directorship.

    While Gathuma denied allegations that BRS officials collude with criminals, he admitted that many fraudulent transactions originate from “dishonest individuals” who have gained access to the system using their credentials. “In all these cases, it is the individuals accessing the system through their user accounts who are responsible for the fraudulent actions,” he explained.

    Gathuma also revealed that the BRS has handled numerous cases of alleged fraudulent changes in company ownership and has taken corrective measures upon receiving valid complaints. He emphasized that no BRS officer has been convicted of involvement in the fraud since the automation of their business processes in 2016. However, a disciplinary process is ongoing involving the loss of credentials by one officer to an external fraudster.

  • How Detectives Nabbed Wanted Congolese Gold Scammer Sneaking Into The Country Through Busia Border

    How Detectives Nabbed Wanted Congolese Gold Scammer Sneaking Into The Country Through Busia Border

    Authorities on Thursday arrested a Congolese fake-gold scammer who in 2023 engineered fraudulent machinations that bamboozled a Ghanaian merchant into a raw USD 100,000 deal is cooling his heels in Kenyan cells after attempting a sneak-back through the Busia border.

    Puati Poba Dally, 35 was intercepted by immigration officials following a stop order issued in September 2023 when the complaint was lodged at the Operations Support Unit offices in Nairobi.

    In a classic case of clueless gold dealers losing millions to transnational organized ruthless gold diggers, the victim’s woes and journey to destitution began when he met Puati at a hotel in Ghana over lunch hour.

    Puati introduced himself as Osuman from Nigeria, who was in Ghana for business but whose residence and business addresses were in Uganda. In the course of their interaction, Puati learned that the victim was interested in the purchase and sale of gold, where he promised to introduce him to dealers in Uganda whereafter he could sell the gold in Dubai.

    Armed with dollars and prayers for a smooth ride, the victim flew to Uganda on August 1, 2023 where Puati introduced him to the alleged dealers only identified as Ben and Hassan (brothers).

    The weeks that followed saw the victim tossed back and forth by the three racketeers, and with each toss came the milking of dollars to a tune of USD 71,300 (Sh10.7 million) in the name of documentation of 10kg of gold, non-criminality certification, melting and taxation. Payment for the gold which was agreed at USD 33,000 per kg was to be made upon delivery to Dubai.

    Confident that he was done with all the logistical procedures, the victim boarded a UAE-bound flight on August 9 ahead of his cargo. He would days later book a flight back to Uganda on August 13 to check his gold, only to be told that it was being held at customs offices in Kenya where it had been erroneously flown through.

    Boarding a flight to the Jomo Kenyatta Intn’l Airport (JKIA) the following day, the victim met Puati’s accomplices only identified as Daniel and Lucy, who fleeced him of close to USD 30,000 (over Sh4.3 million) in tax and clearance of non-existent gold between August 14 and September 1, 2023 when they put him to a flight back to Dubai, in pretext that they were having a flight attendant secure his safe containing gold.

    DCI OSU team would only learn of the fraud when uncontrollable screams and wails were witnessed during take-off, forcing the victim to be ejected from the flight and his complaint recorded.

    Following the arrest of the prime suspect yesterday, interrogations are being conducted with a view to nab other members of the criminal syndicate.

  • Suspected Gold Smuggling And USD8M Cash For Rebels Behind Kenya Airways Employees Detention In DRC

    Suspected Gold Smuggling And USD8M Cash For Rebels Behind Kenya Airways Employees Detention In DRC

    A multiagency team consisting of detectives from the DCI Transnational Organised Crime and Interpol have taken up the case in which two Kenya Airways (KQ) employees have been detained since February 19 2024 by the Congolese Military Intelligence Unit Militaire des Activities Anti Patrie (DEMIAP).

    In a situation that is now fueling tensions between Kenya and the Democratic Republic of Congo (DRC) who already have a strained relationship, Kenya Insights has learned of unspecified amount of gold that is suspected to have been smuggled from the mineral rich country and cash going to reveal a lightly kept secret in the fiasco.

    The airline’s employees were detained for allegedly failing to complete customs documentation for the valuable cargo. Despite a military court’s order for their release, they remain in custody, complicating the situation further.

    While making the initial announcement explained that the said cargo was not uplifted or accepted by KQ due to incomplete documentation asserting that duo was illegally detained.

    “This cargo was still in the baggage section undergoing clearance when the security team arrived and alleged that KQ was transporting cargo without customs clearance,” he said, adding that all efforts to explain to the military officers that KQ had not accepted the cargo because of incomplete documentation were unsuccessful.

    Cash

    Kenya Insights now has information that the detainees, a Kenyan Lydia Olando Maloba and her Congolese colleague Olivier Lufungula were apprehended for their involvement in an incident concerning the attempted export of $8 million (Sh1billion) in banknotes, purportedly unfit for circulation.

    The funds were destined for the reserve federal office in New York but were intercepted by Congolese security forces at N’djili International Airport, reportedly concealed in crates.

    The military intelligence is reportedly suspecting that the cash was destined for funding rebels in the country.

    Gold smuggling ring

    Kenya Insights has also learned of an active investigation by the DCI and Interpol into a gold smuggling syndicate that allegedly involved the detained employees.

    Behind the scenes, detectives familiar with the happenings in Kinshasa says that military intelligence in Kinshasa has also questioned the two staff over the shipment of three tonnes of gold at different times which was earlier moved to Kenya and then to the United Arab Emirates (UAE). Sources say that happened sometime in November 2023 without proper documentation.

    The consignment is said to have gone missing at JKIA customs with the help of an elaborate team of agents and top staff of a respected humanitarian agency, aviation operatives have been linked to the disappearance of the cargo.

    Consequently, security agents consisting of intelligence officers and Interpol have been dispatched to the UAE to unearth the smuggled goods whose proceeds are suspected to be used to fund rebel groups (namely M23 and/or the Alliance Fleuve Congo Group) in DRC. The sources claimed that unscrupulous buyers were behind the disappearance of the cargo and at one time visited Kenya. The said cartels are operating majorly in the UAE and are well-connected.

    Reports also indicate that Foreign Affairs Ministry said the Kenyan delegation dispatched to DRC will be negotiating for the release of the detained KQ staff while Kenyan investigators will help probe the missing cargo that originated from Nairobi.

    Korir Sing’oei, the principal secretary at Kenya’s foreign affairs ministry, emphasized Kenya’s commitment to protecting its citizens abroad and stated that the government was actively engaging with the situation.

    Suspension of flights to Kinshasa

    In a move reflecting deepening diplomatic tensions, Kenya Airways on Monday announced the suspension of its flights to Kinshasa, effective April 30, 2024.

    The decision follows unresolved issues related to the detention of two airline employees. The airline said it had resorted to suspending flights to Kinshasa as its operations were suffering due to lack of adequate support.

    Kenya Airways, in its statement, cited the ongoing detention and the broader geopolitical tensions as key factors in its decision to suspend flights. “The safety and well-being of our employees are paramount, and the current diplomatic environment has made it challenging to operate effectively in Kinshasa,” said a spokesperson for Kenya Airways.

    This development coincides with escalating regional tensions, notably due to the formation of a controversial Congolese military alliance in Nairobi, which includes the M23 rebel group.

    Diplomatic tensions

    The crisis unfolds against a backdrop of increased friction between Kenya and the DRC, following recent political maneuvers. Congolese politicians and groups, including the M23 rebels, launched the Congo River Alliance in Nairobi. The alliance aims to unify various Congolese armed groups and political organizations. The inclusion of the M23 rebels, who are active in the eastern DRC and have been implicated in territorial conflicts, has particularly strained relations.

    This move prompted the DRC to recall its ambassador from Kenya, underscoring the severity of the diplomatic rift. The DRC’s foreign ministry spokesperson, Alain Tshibanda, announced the recall on the X social media platform, highlighting the contentious nature of the newly formed military alliance hosted by Kenya.

    As the situation develops, regional stakeholders are keenly observing the impact on diplomatic and economic relations within the East African Community. Kenya Airways has committed to closely monitoring the situation and resuming flights when conditions permit.

    Meanwhile, at least 12 people, including children, have been killed in twin bomb blasts that hit two camps for displaced people in eastern Democratic Republic of the Congo, according to government officials, the United Nations and an aid group.

    Friday’s explosions targeted the camps in Lac Vert and Mugunga, near the city of Goma, the capital of North Kivu province, the UN said in a statement.

    The attacks, in which at least 20 people were injured, were a “flagrant violation of human rights and international humanitarian law and may constitute a war crime”, it said.

    The Congolese military and the United States accused the military in neighbouring Rwanda and the M23 rebel group of being behind the attacks.

    French President Emmanuel Macron said Rwanda must halt its support for M23, during a joint news conference with Tshisekedi in Paris this week.

    About six million people have been killed since violence erupted in 1996. It has also displaced about seven million people, many beyond the reach of aid.

    Additional reports by Agencies.

     

  • How ‘Deep State’ Trail, Torture And Kill Targets

    How ‘Deep State’ Trail, Torture And Kill Targets

    Ever wonder how the so called deep state trail and kill their targets? The case on the abduction and subsequent disappearance of two Indian nationals and one Kenyan involving 15 officers from the former Special Services Unit (SSU) of the DCI whose hearing began on Monday before Kahawa Law Courts Principal Magistrate Hon. Gideon Kiage paints a closer picture of the intricate killer web.

    The accused persons Chief Inspector Peter Muthee Gachiku, IP James Kibosek Tanuki, Cpl Joseph Kamau Mbugua, Cpl David Chepchieng Kipsoi, Cpl Joseph Mwenda Mbaya, Cpl John Mwangi Kamau, Cpl Hillary Limo Kipchumba, Pc Stephen Luseno Matunda, Pc Simon Muhuga Gikonyo, Pc Paul Njogu Muriithi, Pc/Drv Boniface Otieno Mtulla, Pc Elikana Njeru Mugendi, Pc Fredrick Thuku Kamau, John Wanjiku Macharia and Michael Kiplangat Bett are alleged to have committed the offence on the victims Zulfiqar Ahmed Khan and Mohammed Zaid Sami and Nicodemus Mwania Mwange on diverse dates between 22nd July and 23rd July 2022 at Nairobi County.

    The accused in court.

    The prosecution in their opening statement gave the court a chronology of how the heinous act which was well planned and executed with enormous resources utilized was committed, from how they were trailed by officers from the defunct SSU, continuous location of their mobile phones by the National Intelligence Service officers as well as abduction and Kenya Wildlife Service officers facilitating the alleged disposal of the victims at the Aberdare National Park in Nyeri county.

    The prosecution led by Jalson Makori and Harrison Kiarie also told the court that they will be relying on testimonies from 30 witnesses to prove the case against the accused persons.

    In his testimony, the first witness told the court that he and his co-investigators from the directorate of criminal investigations were assigned duty to investigate and apprehend the suspects accused of committing the crime. He noted that during their investigations, they identified three vehicles registration numbers KDD 632J, KDH 262S and KDG 836X that were believed to have been used in the trailing and subsequent abduction of the three victims.

    He added that on the 6th of October 2022, led by lead investigator they visited Michele gardens in South B where they located one of the vehicles KDH262S being in possession of Edward Kamau Wanjiku at the time of impounding it who upon interrogations introduced the owner Mr. Fabian Mjomba Koshen. He escorted the two to South B police station and booked the detention of the car and handed over the keys to the OCS Chief Inspector Robert Mbui of South B station under OB Number 16 of 6th October 2022. Later he escorted the two to internal affairs unit offices at KCB towers in upper hill Nairobi for interrogations.

    He further told court that they continued with the operation and located KDD 632J Nissan Note at CIC plaza in possession of Ms. Evaline Waithera Wanjiku who was taken to custody. After brief interrogation she introduced another suspect John Macharia Wanjiku. Consequently, they dropped the car at Capitol hill police station where it was booked for detention under OB 22 of 6th October 2022. She also led them to a rented apartment in Kinoo where a search was undertaken but didn’t yield much of material evidence.

    After a brief interview on the evening of 6/10/2022, he booked the three suspects to custody John Macharia Wanjiku at Kilimani police station under OB number 7 of 6 October 2022, Edward Kamau Wanjiku Capitol Hill Police station under OB number 29 of 6th October 2022 and Fabian Mjomba Koshen Capitol Hill Police station OB number 29 of 6th October 2022.

    He added that on 19th October 2022, as a team of investigators they proceeded to Aberdare National Park in Nyeri where they conducted a search and collected exhibits which were forwarded to the government chemist at Kenyatta National Hospital.

    He notes that their visit to Aberdare was informed by the vehicle tracking logs retrieved from the vehicle suspected to have been used in the crime as per the data retrieved from the National treasury, the custodian of government leased vehicles.

    Zulfiqar Ahmad Khan and his friend Mohamed Zaid Sami Kidwai, who were part of the Kenya Kwanza digital campaign team, went missing alongside taxi driver Nicodemus Mwania from Mombasa Road.

    The two contributed immensely to the success of Ruto’s campaign.

    On ascending to power, Ruto immediately disbanded the SSU Unit and the prosecution of the case began.

    WHY WAS DCI DISBANDED?

    “We can efficiently suppress crime, monitor, disrupt and apprehend criminals without abducting, torturing, killing or causing citizens to disappear,” Ruto said, while disbanding the DCI and SSU.

    He added, “It is time to retire these terrible tactics and professionalise our criminal justice system.”

    DCI’s SSU was created in 1999 due to the growing cases of crimes within the country. It was tasked to combat illegal trafficking of firearms and or ammunitions, trafficking of narcotic drugs, robberies, cases of stealing of goods in transit and illegal human trafficking.

    But the very unit which was formed to check crimes turned into a militia as it carried out extrajudicial killings and enforced disappearances of both citizens and foreign nationals. Khan, Kidwai and their driver were probably the victims of SSU men.

  • Dark Past Haunts Nairobi Water Manager As He Fights Transfer

    Dark Past Haunts Nairobi Water Manager As He Fights Transfer

    The dark past of Benedict Kiema Kavua the Procurement Manager of Nairobi City Water and Sewerage Company has caught up with him. He was recently transferred to a different department but rushed to the employment court to reverse the decision making many wonder as to why he would put such a spirited fight against the move yet his new station is not that far.

    Word is Kiema is buying time to to coverup suspected corrupt dealings that he allegedly got into while in office. City Hall insiders also claim that the besieged manager has been in the radar of investigative agencies including Directorate of Criminal Investigations (DCI) and the Ethics and Anti-Corruption Commission (EACC).

    In a quick rejoinder, Nahashon Muguna, the city water company’s managing director moved to court to stop Kiema’s application saying he had obtained the order blocking his transfer last month by concealing material facts from the court.

    Mr Muguna said due to the nature of the company’s mandate and as a matter of policy, it is expected that employees may be transferred or reassigned roles in order to achieve efficiency and optimum performance.

    “It is therefore clear that he (Mr Kavua) did not come to court with clean hands and in a bid to obtain the orders he sought, deliberately failed to disclose this aspect which is material to the matters in question,” Mr Muguna said in a statement filed in court.

    Speaking to Kenya Insights, an insider says Kiema’s fears are based on his past questionable deals and that an audit of the accounting books and records would expose him and also the irregular procurement practices he oversaw as supply chain manager.

    “Kiema is literally in trouble since a report on all requests for quotations is required on RFQ register (where bidders sign as they pick), appointments by the MD for opening and evaluation committee, opening minutes, evaluation minutes’ copies of LPOs and professional opinions.” said the source.

    Auditor Report

    In the auditor general’s report released last year, Nairobi Water lost over Sh10 billion in the financial year ended June 2022 due to faulty water meters, unreconciled financial statements and allowances paid to its staff.

    Auditor-General Nancy Gathungu said the utility firm, which supplies the commodity to city residents, sold a total of 96,404,533 cubic meters of water during the year under review.

    This translated to Sh5.63 billion of income using the rate of Sh58.5 per cubic meter. However, the water firm declared an operating income of Sh4.79 billion leading to an undeclared income of Sh848 million.

    Ms Gathungu also observed in the report that the water firm failed to declare an extra Sh200 million that was obtained as levy water and sewerage services levy to the customers.

    During the year under review, the water firm produced 192,787, 851 cubic meters of treated water but its records understated the volume of water produced by indicating it was 178,526, 912 cubic meters.

    This, the auditor general observed, led to a loss of Sh834 million as projected revenue. The report also indicates that the water firm lost up to 50 percent of its projected water sales, which is way above the 25 percent of the non-revenue water threshold that is allowed by the Water Services Regulatory Board.

    Although the official company records indicate the firm produced 178,526, 912 cubic meters of water only 96,404, 533 cubic meters were billed meaning that it lost a Sh9.8 billion according to the auditor general.

    The report notes that the volumes lost are inclusive of the water and sewer charges at the rate of Sh102.375 per cubic meter.

    Desperation

    Word is the embattled manager is disparately asking for money from his friendly suppliers to ‘fight cartels hell bent to oust me from City Hall’ the money he says is needed to ‘handle’ the big case he’s having in court, how he plans to handle it remains unknown.

    In his objection, Mr Muguna told the court company has the power to reorganize the company to improve productivity.

    He said Mr Kavua had been in the said management position since 2012 and therefore had 12 years of management experience.

    “It is therefore appropriate that his experience in the company should indeed be utilised in other departments and this is in line with best practices where movement of people has yielded better results and eradicated complacency,” he said.

    The Managing Director said that there was no arbitrariness or malice in the changes made. Furthermore, there is no major change of location that would cause prejudice if Mr Kavua reported to his new position immediately.

    Mr Muguna said in the contract signed in September 2010, it was clear to Mr Kavua that he would be required to serve the company in any part of the county.

    The managing director said Mr Kavua did not protest two years ago when he was transferred from his previous post and place of work to the head office to serve as supply chain manager.

    He said Mr Kavua did not protest but reported to the new post and reported on the same day he signed the letter.

    “So I am very surprised to see in his application before this court that he is complaining that he was not given adequate notice when in this case he is not even moving from the head office yet when he moved from the Western Region to the head office he did not protest and in fact reported on the same day the letter was given to him,” he said.

    Mr Muguna revealed that the company currently has 33 management positions, of which 28 are substantively filled and another five are in acting capacity. “This shows that it is important to make transfers when deemed necessary,” he said.

  • DCI Warns Kenyans On Rising Crypto Scams

    DCI Warns Kenyans On Rising Crypto Scams

    The Directorate of Criminal Investigations (DCI) has noted an alarming increase in reports of Kenyans falling victim to scammers operating through online cryptocurrency investment platforms.

    According to DCI, the fraudsters employ “deceptive tactics, enticing individuals to invest their hard-earned money with promises of lucrative returns, only for victims to end up losing substantial sums”.

    The DCI is investigating multiple cases where investors, swayed by enticing messages like “Make Money Sitting At Home” received via short messages (SMS), have found themselves ensnared in fraudulent schemes. These schemes, instead of delivering promised profits, result in significant financial losses for the unsuspecting victims.

    The DCI in a warning statement on Wednesday, urged Kenyans to exercise vigilance and caution against falling prey to this deceptive scheme. The public has been advised to verify the legitimacy of any online investment platform through recognized regulatory bodies such as the Capital Markets Authority (CMA) and the Communication Authority (CA) before committing their funds.

    The advisory comes in response to the escalating cases of cryptocurrency-related fraud in the Kenyan market.

    The DCI stressed the necessity for heightened awareness and improved verification processes to shield citizens from falling victim to these sophisticated scams.

    Kenya, alongside Nigeria and South Africa, was identified among the top countries where scammers generated the highest revenue per user last year, according to a report by the blockchain analysis firm Chainalysis.

    Chainalysis, a blockchain data platform, noted in its 2023 Crypto Crime Report, the value received by illicit cryptocurrency totaled $24.2 billion. This was a decrease compared to 2022 attributed to increased awareness and efforts to combat such illicit activities.

    Stablecoins have emerged as the preferred cryptocurrency for cybercriminals, surpassing Bitcoin in illicit transaction volume. However, the overall share of cryptocurrency volume related to illicit activity is decreasing. Crypto scamming and hacking revenue have also seen declines in 2023, indicating progress in curbing such criminal activities.

    Despite these positive trends, criminals remain innovative, employing techniques to finance and conceal illicit activities on the blockchain.

    Investigations often involve tracing funds across multiple tokens or chains, with the goal of presenting fully auditable data that can stand up in court.

    Detectives at DCI pledged to intensify efforts to combat cryptocurrency-related fraud, urging the general public to remain vigilant and informed to protect themselves from falling victim to evolving online scams.

    Various cases of financial exploitation in the rapidly changing landscape of digital investments are ongoing at various courts in the country.

  • Court Orders EACC To Investigate Lawyer Danstan Omari In Alleged Extortion Scheme

    Court Orders EACC To Investigate Lawyer Danstan Omari In Alleged Extortion Scheme

    The High Court has ordered Ethics and Anti-Corruption Commission (EACC) to investigate Lawyer Danstan Omari, his client Ann Wambui Ndung’u and police officers implicated in a Ksh2 million alleged extortion scheme from two Nigerian nationals.

    Justice Nixon Sifuna of the Milimani Anti-corruption directed the anti-graft body to record statements from two foreigners – Richard Tsado Bala and Lot Ziko Tsado – who are directors of a merchant health supplements company, Vital Quest International.

    The two had complained against Omari, his client Wambui and Directorate of Criminal Investigations (DCI) detectives of extortion.

    “I direct the Director of the EACC forthwith to take statements from the applicants (Tsado and Ziko) and thoroughly investigate and take action on the extortion allegations that the applicants have in this. Application made against the DCI officers who have been handling the Applicant, including the allegations regarding of the Sh2 million paid by the applicants,” the Judge ordered.

    Omari’s take

    Justice Sifuna made the orders despite opposition from Omari, and wondered why the DCI only casually responded to the serious and weighty allegations against them.

    He has also barred the police from arresting the two Nigerians and granted them each Ksh300,000 anticipatory bail.

    The ruling by Judge Sifuna paints a dramatic picture of how the officers from the DCI have in the pretext of investigating the two Nigerians and their company used one of the company’s local directors Ann Wambui Ndung’u to extort from them Ksh2 million.

    In a damning application and affidavit filed in court, the two foreigners state that the officers demanded the Ksh2 million from them in a bid not to charge with the offence of engaging in a business in the country without a work permit.

    Interestingly, the DCI and Wambui are now claiming that the money was lawyer Omari’s legal fees.

    However, the two foreign investors say that Omari’s agreed legal fees was Ksh50,000 but he went ahead to instruct them to pay the Ksh2 million bribe to his account.

    “The applicants have in their application stated that Omari’s agreed legal fees was a mere Sh50,000. They have further stated that the said Sh2 million was on Omari’s instructions paid by Electronic Money Transfer, in three tranches, with each tranche going to a different person/Bank Account,” Justice Sifuna stated in the ruling.

    According to the ruling, the money was to go to Omari’s bank account; the second one to the bank account of one Ms Matina Swiga, an Advocate in Omari’s law firm; and the third one to the bank Account of another person.

    Court documents

    To support their averments, the foreigners annexed to their affidavits filed in court, a huge bundle of documents comprising emails, letters, phone text messages as well as a bank statement of account from the Diamond Trust Bank, T-Mall Branch in the name of Vital Quest International Limited detailing how the alleged extortion scheme was orchestrated.

    The judge noted that Wambui, through lawyer Omari denied those allegations.

    Sifuna was however shocked by DCI’s casual manner of responding to the serious allegations and affidavits filed by the Nigerians.

    “Interestingly despite the applicants damning allegations and Affidavits, the DCI casually responded to the application by way of mere grounds of opposition hence have not answered the questions and issues raised by the applications. Which are serious and weighty,” the judge noted.

    Justice Sifuna however declined a plea by Omari to have the court only determine the issue of anticipatory bail sought by the foreigners.

    “I disagree with Omari’s submission that this Court should in determining this Application, limit itself only to the facts relating to bail. This Court is not persuaded that it should proceed mechanically, blindly and naively, as to confine itself to facts relating only to bail, and close its eyes and ears to other relevant and/or connected facts stated in the Application and the responses,” he ruled.

    “A court, unlike a dog on a leash, has, in arriving at a just and legally sufficient determination, the right to consider all the relevant matters and facts pleaded or proffered by the parties in the pleadings,” he further explained.

    The judge noted that the extortion allegations by the investors touch on the integrity of the entire investigations and the Court will neither keep its hands off such actions, nor shut its eyes and ears to that.

    He added that the court disregarding those allegations will encourage impunity.

    “The DCI being a public institution, the actions of its officers and staff should be subjected to scrutiny and need to be objective, professional, civil and just. It should be accountable for the actions and omissions of such officers,” Justice Sifuna stated.

    DCI cautioned

    While ordering the Director of EACC to record statements and probe the matter, Judge Sifuna held that DCI officers cannot hide under the veil of ‘investigations’ to extort non-nationals.

    “It does not matter that the subjects are foreign nationals who, as lawyer Danstan Omari has argued, have no work permits. That is no licence for the DCI or other state operatives to treat them unfairly and/or extort them. Protection by law is not confined to Kenyan nationals only. It is to all that enter Kenyan borders or reside within Kenya, irrespective of the legality of their presence in Kenya,” the judge ruled.

    He held that foreigners should neither be harassed or extorted.

    Consequently, Sifuna ordered the investigations be immediately commenced in the matter and action taken on those implicated in the extortion of the foreigners and his order be served on the Director DCI as well as the EACC.

    The case will be mentioned on February 6, 2024 for directions before the Presiding Judge Kanyi Kimondo.

  • DCI Seek Interpol Assistance In Arresting Ex-PC Davis Nathan Chelogoi Over Sh1.35B Fraud

    DCI Seek Interpol Assistance In Arresting Ex-PC Davis Nathan Chelogoi Over Sh1.35B Fraud

    The Director of Criminal Investigations (DCI) has written to Interpol and immigration to help establish the whereabouts of a Nairobi businessman who disappeared two weeks after a magistrate issued a warrant of arrest after he failed to appear in court.

    DCI is hunting for Davis Nathan Chelogoi, former Nairobi Provincial Commissioner, who is implicated in the forgery of land title and other documents of an 18-acre land located at Lower Kabete in Nairobi valued at Sh1.35 billion

    Milimani Principal Magistrate Dolphina Alegoon December 23, last year, issued the warrant after Chelogoi failed to appear in court for plea-taking in a case where he is jointly charged with Assistant Deputy Director for Lands Administration Andrew Kirungu.

    The prosecution alleges that Chelogoi and Kirungu conspired to defraud Ashok Rupshi and Hitenkumar Raja of the land along Lower Kabete Road.

    In the letter addressed to the Interpol, immigration, and all government departments, DCI said any information on Chelogoi will be welcomed.

    The prosecution alleged on diverse dates between May 2020 and June 2021, Kirungu and Chelogoi procured registration of the said land by falsely pretending the property belonged to the latter.

    Kirungi was also charged with abuse of office and was remanded in custody until December 28, last year, when the court gave him bail.

    However, Chelogoi has been on the run.

    In August 2022, an Environment and Land Court ordered businessman Jacob Juma (deceased) to pay Sh50 million for attempting to grab the same land.

    Environment and Land Court judge Loice Komingoi, in her ruling, noted that the late Juma grabbed and illegally occupied the prime land in Loresho, thereby denying its real owners the right to enjoy their property.

    The judge did not, however, specify whether the compensation would be paid by Juma’s widow Miriam Wairimu.

    According to the judge, a forensic document examiner had proved that the signature on Juma’s title was a forgery.

    On Wednesday, Mr Shah, owner of land known as LR 18485, was threatened by goons after he went to access the land. He reported the incident at the Spring Valley Police Station.

    “I kept fighting against Jacob Juma in the court case for 13 years, and finally, the court delivered the judgment in July 2022 confirming that we were the legitimate owners of the property. Later after the court ruling in our favour, to our surprise, Davis Nathan Chelogoi claimed that he was the owner of this property,” said Shah.

  • IG, DCI Boss Summoned Over Disappearance Of Sakaja’s Errand Boy

    IG, DCI Boss Summoned Over Disappearance Of Sakaja’s Errand Boy

    The Inspector General of Police Japheth Koome and the Director of Criminal Investigation Mohamed Amin have been summoned to appear in court physically on Monday 20th November 2023 over the alleged abduction of a Nairobi county employee.

    Justice Chacha Mwita ordered the two to appear in court and explain the whereabouts of Osman Khalif a personal assistant to Nairobi County Governor Johnson Sakaja who is said to have been kidnapped at Sarit Centre on Friday 10th November 2023.

    The Judge’s orders came after Law Society of Kenya President Eric Theuri, lawyers Dancun Okatch and Oringo Waswa representing Osman Khalif informed the Judge that the orders issued by the court seeking to have him or his abductors brought to court have not been complied with.

    Justice Mwita has also ordered Safaricom PLC limited to produce car tracking records of abductors’ vehicle.

    According to the LSK, Osman who is an employee of Nairobi County was abducted a week ago while in the company of his wife who was left at the parking at Sarit Centre in Nairobi.

    According to Yasin, his brother was taken by people who were driving a double-cabin motor vehicle registration number KCT 163H. “They had pistols with them and they refused to identify themselves. Up to now, we have no idea where my brother is,” he added.

    The family has added that Nairobi Governor Johnson Sakaja was aware of what was happening but yet to reach out to the family.

    Abdi served as the MCA for South C ward from 2017 but was defeated by Abbas Khalif of the Orange Democratic Movement (ODM) in last year’s general election. He has been in the middle of City Hall scandals that has challenged the city boss.

    Pastoralists Parliamentary group led by Kamukunji Mp Yusuf are demanding the Inspector General Japhet Koome to release former South C MCA Osman Khalif whom they allege was abducted by security agencies.

  • Investigators Camp At City Hall Over Fraud Allegations Running Into Hundreds Of Millions

    Investigators Camp At City Hall Over Fraud Allegations Running Into Hundreds Of Millions

    The Directorate of Criminal Investigations (DCI) has launched investigations into suspected fraudulent payment of hundreds of millions of shillings by the county government of Nairobi for goods never supplied and services not rendered.

    DCI says the nine listed firms are believed to have been used in a money laundering scheme and fraudulent payments.

    In a letter dated July 21, the Director of DCI’s Investigations Bureau (IB) David Birech wrote to Nairobi Governor Johnson Sakaja demanding a list of tender documents, requisitions by user department, award contracts, delivery and inspection reports and all local purchase orders issued to profiled nine companies believed to have been used to siphon the money.

    “This office is investigating a case of suspected money laundering in which Nairobi County Government is alleged to have fraudulently made payments to companies which did not render services,” Birech wrote.

    “We further request to assign officers who have knowledge of the various processes listed above to assist us with information on their roles and record statements to that effect,” the letter added.

    Collusion with officers

    Preliminary investigations reveal that various section heads colluded with procurement officers, contractors and the County Treasury officials to siphon hundreds of millions from the public coffers.

    The nine companies are Larsen Investment Company, Burasha General Suppliers Limited Tweem Limited, Future Link Limited, and Cloud Mobile Technologies Limited. Others are AR Pharmaceuticals Limited, Instabul Investment Limited, Ramecon Engineering Limited and Brigit West Limited.

    DCI’s probe comes just a month after the Controller of Budget (CoB) Margaret Nyakang’o declined to approve Sh1.5billion expenditure requisitions they made to pay legal fees and development expenditure without proper providing supportive documents.

    Nairobi County government had made an exchequer requisition of Sh2 billion to 19 law firms as pending bills without proper documentation. City Hall further made an additional clearance request of Sh379million categorised as development expenditure of building and construction supplies claimed to be ‘air supply’.

    “The schedule of 19 firms to be paid does not include the invoices’ dates; therefore, it is difficult to ascertain whether they are pending bills or related to works done and invoiced in the current financial year. Please, therefore, revise the schedule to include the date of the invoices and attached copies of the payment vouchers for the 19 firms,” the CoB wrote. The letter, dated June 27, Ref: COB/NBI/001/171(11), was addressed to Sakaja through the Finance and Economic Planning County Executive Committee Member Charles Kerich.

    “Further, it is difficult to match the proposed payments with the pending bills report earlier presented to this office,” the CoB added.

    COB requisitions

    Sakaja’s administration made the two requisitions on June 19 (Sh562,124,660) and another amounting to Sh509,152,645.

    Nyakang’o instructed the County Treasury to provide the basis for the legal fees, status of each court case including copies of judgment where applicable.

    Also, the CoB’s office demanded a clear breakdown detailing the criteria used in the selection of the said payments, the recommended ‘first-in-first-out’ method used in identifying the bills and information on whether the proposed payment is a partial payment or a final payment to the legal firms.

    The payments had also been blocked through a law suit. According to documents filed in court, Sakaja’s administration owes various law firms more than Sh21billion as pending bills as of January 2023.

    Documents filed in court show the law firms to be paid include Makallah Theuri & Company Advocates (Sh60million), L.N Nyaribo & Company (Sh50million), Okatch & Partners (70million), Okubasu Munene & Kazungu Advocates (Sh30million), Gikunda Miriti & Company (Sh67million) and Masire & Mogusu (Sh27.5million). Others are Anne Munene & Company (Sh34million), Koceyo & Company Advocates (Sh43.8million), Roba & Associates (51.8million), Ummi Bashir & Company Advocates (Sh32million), J.W Wachira Advocates (Sh58million), Momanyi and Associates (Sh91million), Jamal Bake & Associates (Sh47million) and Bespoke Insurance Brokers Limited (Sh28million).

    (PD)

  • Agencies Probe Pakistani Businessman Hussain Jarrar Over Criminal Acts

    Agencies Probe Pakistani Businessman Hussain Jarrar Over Criminal Acts

    A wealthy Pakistani businessman is under investigations following reports that he is involved in money laundering and drug trafficking.

    Authorities say the billionaire has gone underground after learning that his immigration status in the country is also on the radar of investigators.

    Hussain Jarrar, 48, who arrived in the country in 2006 and was later employed as a sales motor vehicle agent is now suddenly a billionaire.

    The Pakistani is also being probed for forgery after it emerged he had obtained a Kenyan identity card fraudulently.

    “Previously, Jarrar was a director at Al- Husnain Motors Limited and obtained three of his previous work permits from February 18, 2006 to February 2, 2013. Later the directors of Al-Husnain Motors split and hence the establishment of Al-Shujah Motors Limited by Jarrar,” said part of a letter by one of the State agencies probing the matter, dated May 19, 2022.

    Work permit

    Officials say despite being a foreigner, Jarrar declared that he is Kenyan in one of the companies, Silver Dash Limited, which he runs with his two children.

    He had then unsuccessfully applied for renewal of his work permit as a foreigner. The application for renewal was rejected.

    Jarrar’s work permit expired last year in November and he has since then been operating from his hideout in the city using proxies to fix his deals, officials said.

    Preliminary investigations have also revealed that the foreigner is linked to a high-ranking politician who has been helping him renew his documents in vain.

    The officials say Jarrar, who comes from Pakistan near the Iran border, could be part of an international money laundering ring.

    He is currently building a multi-million-shiling mall Al-Shujah Mall, in Kilimani adjacent to Yaya Centre and has also bought two prime parcels of land in the same area.

    Among the agencies pursuing him include the Directorate of Criminal Investigations (DCI), the Financial Reporting Centre (FRC), the Immigration Department and the National Intelligence Service (NIS). “He was employed as a sales official at Al-Husnain Motors in the city where he earned Sh70,000 up to 2013. He can’t explain how he made the billions he is splashing around,” said an official aware of the probe.

    In another letter dated May 2022, the agency says Jarrar is currently a director at Al-Shujah Motors Limited which was established in 2012 and started operations of selling second-hand vehicles in January 2013. In June 2016, he made an application as a permanent resident through lawful status which was pending for five years, according to the correspondence.

    In June 2021, he applied for his citizenship by lawful residence when it was established he had an adverse notice due to his suspicious involvement with Iranians.

  • Kingsway Tyres and Automart on The Spot Over Sh2.4B Tax Evasion Scandal

    Kingsway Tyres and Automart on The Spot Over Sh2.4B Tax Evasion Scandal

    The management of the Kenya Revenue Authority is under scrutiny for awarding tax waivers worth Sh3 billion to businesses through questionable dealings.

    Due to collusion among KRA officials, certain lawyers, and firms, the government has been losing billions of shillings in the recomputation of taxes, waivers, and abandonment.

    According to court documents, KRA filed a tax demand of Sh2.4 billion against Kingsway Tyres and Automart Limited following an assessment in 2004.

    The tax assessment included more than Sh1.7 billion for income tax, more than Sh272 million for VAT, and the remaining amount for auctioneer fees. To enforce the demand, KRA attached Kingsway’s property through Speedman Commercial Agencies Limited.

    However, on September 27, 2004, the taxman agreed to negotiate with Kingsway Tyres and Automart. During these negotiations to offset their tax obligations, Kingsway Tyres and Automart committed to deposit Sh1.5 million every week on Fridays.

    KRA requested Speedman Commercial Agencies Limited to release the goods, and the previously closed offices of Kingsway were reopened.

    Kingsway Tyres and Automart took the case to court to challenge the Sh2.4 billion tax demand. Unfortunately, they lost the case, and the ruling was delivered on May 16, 2006.

    The ruling against Kingsway Tyres and Automart cleared the path for KRA to collect the Sh2.4 billion they had sought in 2004, as all obstacles were removed.

    Following the failure of Kingsway Tyres and Automart to pay the taxes, two petitioners, namely Okiya Omtatah (now Busia Senator) and Mohamed Ahmed Mohamed, took the matter to court on July 2, 2014.

    They challenged the alleged violation and infringement of fundamental rights and freedoms as stated in articles 27, 40, 46, and 47 of the Constitution, as well as the KRA Act, regarding tax evasion and the failure to comply with the court’s 2004 order to pay taxes.

    Omtatah and Mohamed also contested the validity of Kingsway Tyres and Automart’s decision to “change its name and pin from P000606825c to Kingsway Tyres Limited pin number P051116728X” in order to obtain a clean tax compliance status and evade paying Sh2.4 billion in tax arrears.

    They included several parties in the case, such as the KRA Board of Directors, Kingsway Tyres and Automart, Kingsway Tyres Limited, the Attorney General, the Director of Criminal Investigations, the Director of Public Prosecution, and the Ethics and Anti-Corruption Commission.

    Other individuals involved in the case were former KRA Commissioner Generals Michael Waweru and John Njiraini, former EACC chair Mumo Matemo, and Speedman Commercial Agencies Limited.

    KRA, represented by their lawyers Waweru Gatonye and Company advocates, made an application in 2019 seeking consent to collect the Sh2.4 billion from Kingsway Motors. The condition was that Omtatah and Mohamed would agree to withdraw the inclusion of several other people as defendants in the case, leaving only KRA, Kingsway Tyres, Automart, and Kingsway Tyres Limited.

    The application was granted, but KRA was required to file a response, which they have failed to do so since 2019. As a result, the final determination of the cross-petition involving Speedman auctioneer, KRA, and Kingsway Tyres and Automart is still pending, awaiting KRA’s response.

    KRA Board chairman Antony Mwaura said they would pursue all firms that received undue tax abandonment, waivers, and refunds. They will also investigate if there was collusion between staff members and these firms.

    “As part of my achieving the target, I will ensure that KRA relook all the waivers, abandonment and exemptions that were offered to companies,” said Eng Mwaura. He said also on his radar were tax refunds that were offered to firms fraudulently.

    “Through the help of Treasury, we will ensure unnecessary tax exemptions are reversed,” said Mwaura.