16 Metropolitan Sacco officials charged over plot to defraud teachers Sh14.5m

Officials linked to the alleged Sh14.5 billion fraud at Metropolitan National Sacco appear at the Milimani Law Courts on Tuesday, May 26, 2026. [Nancy Gitonga, Standard]

Sixteen officials linked to Metropolitan National SACCO have been charged before a Nairobi court over allegations of conspiracy to defraud the teachers deposit-taking union of more than Sh14.5 billion.

The accused, most of them former teachers, appeared before Milimani Magistrate Daisy Mutai  on Tuesday where they denied nine criminal charges brought by the Office of the Director of Public Prosecutions (DPP).

Those charged include Christopher Kahuno Karanja, John Kimani Munyaka, James Kamau Ngugi, Patrick K. Kagwi, Francis Kamau Nganga, Benson Mwangi Nganga, Paul Kaberere, Geoffrey Wamae and Duncan Chege. Others are George Mwihia, Daniel Lee Kamau, Joseph Gachunga Mwaura, Boniface Muthama, Rosemary Chege and Edward Duncan.

Court records show the accused face charges ranging from conspiracy to defraud, unlawful investment of SACCO funds, failure to maintain proper books of accounts, failure to establish a credit committee, and failure to appoint an internal auditor as required under cooperative regulations.

The prosecution alleges that between 2012 and 2021, the officials jointly conspired to defraud Metropolitan National SACCO of Sh14,497,677,664 through various financial decisions made at different times and locations within Kenya.

They are further accused of unlawfully investing SACCO funds outside its core mandate belonging to teachers’ union.

In one count, prosecutors claim that between 2014 and 2021, officials irregularly authorised the investment of about Sh1.014 billion in land acquisition in Kitengela, Kajiado County.

Other charges indicate that the accused failed to maintain proper accounting records reflecting the true financial position of the SACCO, failed to establish required oversight committees, and failed to ensure loans issued to members were fully secured.

The prosecution also alleges that the officials failed to establish both credit and tender committees, exposing the SACCO to significant financial risk.

They are additionally accused of failing to appoint an internal auditor as required under SACCO regulations.

After taking plea, the accused requested to be released on lenient bond terms, arguing that most are elderly retired teachers who would comply with all court conditions.

However, lawyer Gordon Ogado, representing victims, opposed their release on lenient terms, telling the court there was credible investigative evidence behind the charges.

“This money is not something plucked from the air. It is after due diligence by SASRA,” said Ogado.

Lawyer Ogado further told the court that a  2023 investigative report had established large-scale misuse of SACCO funds, adding that members of the SACCO had already been notified of potential surcharge proceedings.

Ogado also argued that supervisory failures contributed to the alleged financial loss, but insisted the accused bore responsibility for their actions.

He added that the matter involved breach of trust against members, most of whom are teachers, saying the SACCO had evolved from a teachers’ society into a large national cooperative.

The court was told that the alleged financial loss represented savings contributed by ordinary members over years of trust, which were now under scrutiny due to governance failures.

Magistrate Mutai considered the submissions and released the accused on a bond of Sh200,000 each with one surety of a similar amount, or an alternative cash bail of Sh70,000.

The court also issued warrants of arrest against three individuals who failed to appear namely Samuel Ndungu Muiruri, Francis Wachiuru Mbae, and Lucy Kabiru.

The matter will be mentioned on June 22, 2026, for further directions as the trial proceeds.