Court detains four suspects in multi-billion KUSCCO fraud scandal

The four individuals arrested in connection with the multi-billion-shilling fraud scandal at the Kenya Union of Savings and Credit Co-operatives (KUSCCO), will remain in custody until the determination of their bail terms on Tuesday, February 18, 2025.

George Magutu Mwangi, Mercy Muthoni Njeru, George Ochola Owino and Jackline Pauline Atieno Omolo, who were presented at the Milimani Law Courts, are facing various charges including conspiracy to defraud, stealing by company directors and making a false document.

“As the four suspects cool their heels in the cells, the courts have issued summons to appear before court to the former KUSCCO Managing Director, George Otieno Ototo who is required to appear for plea taking on the same day his co-accused persons will be awaiting the determination of the bond terms,” the Directorate of Criminal Investigations (DCI) said in an X statement on Friday.

Jackline Pauline Atieno Omolo, George Ochola Owino, and Mercy Njeru, were arrested within Nairobi County on Thursday while George Magutu Mwangi was arrested in Nyeri County.

Their arrests were preceded by Cabinet Secretary for Cooperatives and MSMEs Wycliffe Oparanya handing over a forensic audit report of the case to the police for further investigation and legal action on Tuesday.

The audit, conducted by PricewaterhouseCoopers (PwC), uncovered massive mismanagement, including Ksh.3.7 billion in non-performing loans, overstated profits of Ksh.797.9 million over six years and irregular commission payments totaling Ksh.2.7 billion.