- Bernard Kariuki Ngugi was arraigned at the Milimani Law Courts where he denied charges of theft by servant, money laundering and other related offences.
- He was released on a bond of Ksh.2 million or an alternative cash bail of Ksh.800,000.
- The case will be mentioned on November 10, 2026, for pre-trial directions.
A former Credit Control Officer at an insurance company has been charged with stealing Ksh.89.5 million from his former employer in a suspected fraud scheme involving the manipulation of financial systems and suspicious transactions.
Bernard Kariuki Ngugi was arraigned at the Milimani Law Courts
on Friday, October 23, 2026, where he denied charges of theft by servant, money
laundering and other related offences.
He was released on a bond of Ksh.2 million or an alternative
cash bail of Ksh.800,000. The case will be mentioned on November 10, 2026, for
pre-trial directions.
According to the Directorate of Criminal Investigations (DCI),
detectives from the Banking Fraud Investigations Unit (BFIU) established that
the alleged fraud occurred between 2018 and November 2025, when Ngugi is
suspected of using his privileged access to the company's financial systems to
divert Ksh.89,579,274.
Investigators allege that the funds were channelled through
three companies identified as Auris General Merchants Ltd, Donbitz Global
Limited and Pedram Global Limited, which reportedly had no legitimate business
relationship with the insurance firm and were not entitled to receive the
payments.
The DCI said the suspect allegedly manipulated the company's
financial systems to introduce the three entities into its payment chain,
enabling the diversion of corporate funds.
Investigations established that Ksh.35.27 million was
channelled through Auris General Merchants Ltd, while Donbitz Global Limited
received Ksh.32.68 million. A further Ksh.21.63 million was allegedly diverted
through Pedram Global Limited.
Detectives also established that subsequent withdrawals and
transfers were made under circumstances suspected to have been intended to
conceal the origin and movement of the funds.
The investigation file was forwarded to the Office of the
Director of Public Prosecutions (ODPP), which agreed with the investigators'
recommendation to charge Ngugi over the alleged scheme.
He was subsequently tracked down and arrested in Nairobi
before being presented in court to face the charges.