DCI accused of shielding cartel that defrauded trader Sh10m

DCI officers arrested a suspect but he was later released after securing an anticipatory bond. [File, Standard] 

The Directorate of Criminal Investigations (DCI) is facing criticism for delays in arresting eight suspects accused of defrauding a Mombasa businessman of Sh10.5 million.

Among those named in the case is a senior procurement officer at the Kenya Marine and Fisheries Research Institute (KMFRI).

Prosecutors recommended the arrest of the suspects on March 9, 2026, after investigations linked them to a scheme to defraud Dennis Monari.

The Office of the Director of Public Prosecutions approved charges against the eight suspects for allegedly obtaining money through false pretences and conspiracy to defraud.

Investigators claim that KMFRI procurement officer Jared Nyaundi played a role in connecting Monari to a group suspected of orchestrating the fraud.

According to the investigation report, the group allegedly convinced Monari that they could help him secure a Sh27 million tender to supply RM43 herbicide to a company identified as Termite Group Limited.

One of the main suspects is Silas Otuke, known for challenging Hassan Joho's nomination and election as Mombasa governor in 2012. Other suspects named in the case include Denis Bwire, Frank Omondi, Susan, Carol Imbayi, Mary Kahuhu, and Kepha Ocharo.

In a letter dated March 9, 2026, the DPP stated that there was enough evidence to charge the suspects with conspiracy to defraud under Section 317 of the Penal Code and obtaining money by false pretences under Section 313.

Police reports indicate that the alleged scheme was planned within KMFRI offices in Mombasa’s Mkomani area. Although the DPP directed the DCI to arrest the suspects as early as January 10, 2024, most of them remain at large.

In his statement to investigators, Monari said he initially visited KMFRI seeking business opportunities. He claims Nyaundi informed him that the institution lacked funding at the time but offered to connect him with other suppliers and potential projects.

Nyaundi allegedly introduced him to Otuke, whom he described as someone he had previously worked with.

Monari later met Otuke in Nairobi’s Kilimani area, where he was allegedly introduced to an Israeli-linked company called Baraw Group, said to be involved in the construction of Thwake Dam. Monari declined that opportunity, saying he was not interested in such projects.

However, on February 6, 2024, Otuke allegedly presented him with a Local Purchase Order (LPO) from Termite Group Limited for the supply of RM43 worth of herbicide, valued at Sh27 million.

Monari said he questioned the legitimacy of the deal, but Otuke reassured him that the company was genuine and had successfully worked with his associates before.

According to Monari, he conducted his own background checks and confirmed that the company existed and maintained an online presence. Otuke then proposed a partnership, claiming he lacked the financial capacity to fulfil the tender alone.

The investigation further alleges that Denis Bwire, introduced as Otuke’s assistant and former classmate at Kampala University, signed documents linked to the deal.

As efforts to source the RM43 herbicide began, Monari reportedly discovered the product was unavailable locally.

After several days of searching, Otuke allegedly directed Bwire to contact Frank Omondi.

At an agrovet linked to Omondi, a woman identified as Susan reportedly confirmed that the product was available.

Investigators say that after Monari made payments connected to the deal, communication from Otuke suddenly stopped.

Police believe the suspects operated as an organised fraud network that carefully used legitimate businesses and convincing documentation to gain the complainant’s trust.

The report concludes that the group allegedly coordinated their actions to manipulate and deceive Monari into parting with millions of shillings.

Last month, Nyaundi was briefly arrested by DCI officers but was later released after authorities established that he had already secured an anticipatory bond from the court.
Monari says the alleged fraud has left him in severe financial distress.

“The fraud has put a lot of financial strain on me because I borrowed money from banks, and they are now threatening to auction properties I used as collateral,” he said, adding that only one suspect has so far been arrested and charged.