19 senior Metropolitan Sacco officials charged with fraud

Added: 2026-05-27

[00:00:00]Let's now have a look at other developments tonight. 19 current and former officials of Metropolitan National Circle, formerly known as Kiambu Teachers Circle, have been charged with nine offenses for allegedly defrauding teachers of a 14 billion shillings. Now, the office of the director of public prosecutions stated that the accused, though through a fraudulent scheme and multiple violations of Kenya Circle laws, tied to the management of the society between 2012 and 2021 failed to maintain proper books of accounts showing a true and fair state of affairs of the circle's financial position as required by the Circle Societies Regulatory Authority.

[00:00:46]And as Ruth Omboyi reports, the court has issued warrants of arrest for two suspects who did not show up for plea taking.

[00:00:59]Tuesday at Milimani Law Court and serving and retired officials of the former Kiambu Teachers Circle, now Metropolitan Circle, found themselves in the dock. The prosecution told trial magistrate Daisy Mutai that the accused conspired to defraud jointly with others not before court 14.4 billion shillings in a span of 9 years. I pray for warrants of arrest against accused number two, Samuel Muguna Wanjohi, accused number 11, Francis Wacira Mbai, and accused number 18, Lucy Kabiro, who have not appeared before you.

[00:01:42]There was an indication that one of them is deceased, but we have not received any confirmation of that fact.

[00:01:48]Trial magistrate Daisy Mutai also added that the officials failed to establish and maintain a credit committee as required under prudential regulations.

[00:01:58]We do not know the intention of the investigating officer when they were coming up with these figures.

[00:02:06]Which is exaggerated and does not exist.

[00:02:13]I do not wish to go to the merits of this matter because we have an opportunity during the hearing.

[00:02:19]The officials are also facing several other charges including failure to maintain the legally required 15% liquidity ratio, member savings deposits and short-term liabilities.

[00:02:32]For them to arrive to contribute to the tune of 14 billion Kenya shillings, it must have been a very serious and arduous task for them.

[00:02:40]It means they have basically sacrificed blood and sweat for them to save these sums of money that are entrusted to the circle. And by extension, the people standing before you were given the duty to save guard the same.

[00:02:56]Your honor, they failed to do so.

[00:02:58]Pending pre-trial, the magistrate has released each one of them on a 200,000 shillings bond after pleading not guilty to the charges. In the present case, what I find to be reasonable uh is as follows. I will grant bond of Kenya shillings 200,000 with one surety of a similar amount.

[00:03:20]Those charged include Christopher Kauno Karanja, Samuel Ndung'u Muhoro, John Kimani Munyaka, James Kamau Ngugi, Patrick K. Kagwe, Francis Kamau Ng'ang'a, Benson Wang'ingi Ng'ang'a, Paul Kaberere, Geoffrey Wamai, Duncan Chege, Francis Washuru Mbai, George Muhiya, Daniel Kamau, Joseph Gashunga Mwaura, Boniface Mudhama, Rose Mary Chege, Edward Duncan, Lucy N Kabiru, and James M Ngomo.

[00:03:58]With the latest flag-off by SASRA and the accused being charged, the question begs, are money safe in Saccos?

[00:04:09]Ruth Wamboi reporting from Milimani's Law Court.