A former credit control officer, Bernard Kariuki Ngugi, has been charged over the alleged theft of Sh89.58 million from his former employer in a suspected fraud scheme involving manipulation of financial systems and suspicious transactions.
Ngugi was arraigned at the Milimani Law Courts on Friday, October 23, 2026, where he pleaded not guilty to all the charges.
According to investigators from the Banking Fraud Investigations Unit (BFIU), the alleged fraud occurred between 2018 and November 2025, during which the suspect allegedly exploited his privileged access to the insurance company’s financial systems to divert funds through three companies.
The entities identified in the investigation are Auris General Merchants Ltd, Donbitz Global Limited and Pedram Global Limited, which investigators said had no legitimate business relationship with the insurance firm and were not entitled to receive the payments.
Investigators established that Sh35.27 million was allegedly channelled through Auris General Merchants Ltd, Sh32.68 million through Donbitz Global Limited and a further Sh21.63 million through Pedram Global Limited.
The probe further revealed that the alleged scheme involved manipulating the company’s financial systems to introduce the three entities into the payment chain, enabling the suspected diversion of corporate funds.
Detectives also established that withdrawals and transfers were allegedly conducted in circumstances intended 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 the suspect with theft by servant, money laundering and other related offences.
Ngugi was subsequently traced and arrested in Nairobi before being presented in court.
The court released him on a bond of Sh2 million, with an alternative cash bail of Sh800,000.
The matter is scheduled for a pre-trial mention on November 10, 2026, as the legal process continues.
