Detectives from the Directorate of Criminal Investigations (DCI) Insurance Fraud Investigation Unit have nabbed seven directors and former directors of two popular insurance companies for insurance fraud amounting to Ksh309 million.
In a statement on Wednesday, May 21, DCI announced that the seven were arraigned at the Milimani Law Courts, where they all pleaded not guilty.
Three of them were former top officials of one insurance company, while the other three were current directors of a different insurance company.
This arrangement followed months of fraud investigations into the two companies that were launched in September 2024 after officials from one of the companies uncovered the fraud.
Reportedly, while in the process of taking over the assets of the first insurance company, the Assets Recovery Agency (ARA) discovered that the company had a secret bank account registered in the name of the other bank account.
The secret bank account was opened on May 1, 2024, and the signatories were the then top management of the insurer, the Director, the Chief Finance Officer and an Accountant.
Between May 1 and August 15, they are said to have siphoned a total of Ksh309 million through their respective mobile money accounts from the bank account.
All the collections of insurance premiums from 27 branches across the country were being remitted into the said bank account.
Evidence presented by the Director of Public Prosecutions included statements recorded from relevant witnesses and all relevant documents collected.
Consequently, the DPP advised that the seven be charged with the offence of Insurance Fraud Contrary to Section 204B(2) as read with Section 204B(5) of the Insurance Act.
The four current directors of the insurance agency were also charged with stealing by the Directors contrary to Section 282 of the Penal Code.
Ultimately, the meticulous investigations by the DCI detectives led to their apprehension on May 20, after which they were held in custody at the Capitol Hill Police Station before their arraignment.
