Family Bank to pay Ksh.64M fine over NYS scandal transactions

Family Bank has entered a plea bargain agreement with the Director of Public Prosecutions (DPP) in a case where the financial institution is charged for handling money allegedly looted from the National Youth Service (NYS).

The bank is expected to plead guilty to six counts of failure to report transactions made by NYS suspects who include Josephine Kabura.

“The accused person is entering into this plea Agreement and is pleading guilty freely and voluntarily without promise or behalf of any kind,” reads the plea agreement

According to the documents filed in court, the bank is expected to pay Ksh.64.5 million as court fine for the six counts and should be dispersed as follows.

A total of Ksh.24.5 million will be deposited into the NYS account while the balance of Ksh.40 million shall be deposited as court fine.

“If the accused person (Family Bank) fails to comply with the terms and conditions set forth in the plea agreement, the State may fully prosecute the accused on all criminal charges that can be brought against it,” reads part of the agreement.

The agreement is dated December 11, 2018 and signed by Secretary, Public Prosecutions Dorcas Oduor.