A former insurance company Credit Control Officer has been arrested and charged over the alleged theft of Ksh89.58 million in a suspected financial fraud scheme that investigators say exploited privileged access to corporate payment systems for nearly seven years.
The Directorate of Criminal Investigations (DCI) said its detectives uncovered a scheme in which Bernard Kariuki Ngugi allegedly diverted millions of shillings through three companies that had no legitimate business relationship with his former employer.
According to the DCI, the suspected fraud occurred between 2018 and November 2025, with investigators alleging that the former employee manipulated financial systems to introduce the three entities into the company’s payment chain.
The companies identified in the investigation are Auris General Merchants Ltd, Donbitz Global Limited and Pedram Global Limited.
How the Ksh89.5 million was allegedly diverted
In a statement detailing the investigation, the DCI disclosed that the three companies allegedly received millions of shillings despite having no legitimate entitlement to payments from the insurance firm.
Investigators established that Ksh35.27 million was channelled through Auris General Merchants Ltd, while Donbitz Global Limited allegedly received Ksh32.68 million. Pedram Global Limited accounted for a further Ksh21.63 million.
The transactions total approximately Ksh89.58 million, matching the amount at the centre of the investigation.
βThe three entities, according to investigators, had no legitimate business relationship with the insurance company and were not entitled to receive the payments,β the DCI stated.
The agency said the findings raised questions about how the companies were introduced into the firm’s payment system and subsequently received the disputed funds.
Investigators trace alleged manipulation of financial systems
According to detectives from the Banking Fraud Investigations Unit (BFIU), the suspected scheme involved exploiting privileged access to the company’s financial systems to facilitate payments to the three entities.
Investigators further established that withdrawals and transfers were allegedly conducted in circumstances intended to obscure the origin and movement of the money.
The findings prompted detectives to compile an investigation file and forward it to the Office of the Director of Public Prosecutions (ODPP).
The ODPP reportedly concurred with the recommendation to charge the suspect with theft by servant, money laundering and other related offences.
Suspect arrested in Nairobi, released on bond
The DCI said the suspect was subsequently trailed and arrested in Nairobi before being presented at the Milimani Law Courts on Friday, October 23, 2026.
Ngugi pleaded not guilty to all the charges and was released on a bond of Ksh2 million, with an alternative cash bail of Ksh800,000.
The case is scheduled for a pre-trial mention on November 10, 2026, as the legal process gets underway.
His plea means the allegations remain to be proved in court, and he is presumed innocent unless proven guilty.
DCI sends warning over financial crimes
The investigation highlights the risks associated with insider access to corporate financial systems and alleged attempts to channel funds through entities without legitimate business links to the institutions making the payments.
In its statement, the DCI reaffirmed its commitment to pursuing complex financial crimes and following transactions suspected of concealing the movement of illicit funds.
βThe Directorate of Criminal Investigations remains resolute in its pursuit of complex financial crimes, following the money trail and bringing to account those who abuse positions of trust for personal gain,β the agency said.
The case now moves to the courts, where the prosecution will be required to establish the allegations against the accused.
