A former Credit Control Officer at an insurance company has been charged over the alleged theft of Sh89.5 million in a suspected insider fraud scheme involving the manipulation of financial systems and suspicious transactions.
Bernard Kariuki Ngugi was arraigned at the Milimani Law Courts on Friday, October 23, 2026, following investigations by detectives from the Banking Fraud Investigations Unit (BFIU).
According to investigators, Ngugi allegedly exploited his privileged access to his former employer's financial systems to facilitate the diversion of Sh89,579,274 between 2018 and November 2025.
The investigations established that the alleged scheme involved three companies: Auris General Merchants Ltd, Donbitz Global Limited and Pedram Global Limited.
Detectives said the entities had no legitimate business relationship with the insurance company and were not entitled to receive the payments, raising questions about how they were introduced into the firm's payment system.
Investigators allege that the suspect manipulated the company's financial systems to incorporate the three companies into the payment chain, enabling the transfer of funds that were not legitimately owed to them.
A breakdown of the transactions shows that Sh35.27 million was allegedly channelled through Auris General Merchants Ltd, while Donbitz Global Limited received Sh32.68 million. A further Sh21.63 million was reportedly transferred through Pedram Global Limited.
The total amount involved in the transactions is approximately Sh89.58 million.
Detectives further established that withdrawals and transfers were conducted in circumstances suspected to have been designed to conceal the origin and movement of the money.
Following the investigations, the case file was forwarded to the Office of the Director of Public Prosecutions (ODPP), which concurred with the recommendation to charge Ngugi.
He faces charges including theft by servant, money laundering and other related offences.
The suspect was subsequently traced and arrested in Nairobi before being presented in court, where he denied all the charges.
The court released him on a bond of Sh2 million, with an alternative cash bail of Sh800,000.
The case is scheduled for a pre-trial mention on November 10, 2026.
The Directorate of Criminal Investigations said it remained committed to investigating complex financial crimes and pursuing individuals suspected of abusing positions of trust for personal gain.
The allegations against Ngugi are yet to be proven in court.
