The Office of the Director of Public Prosecutions has taken a rare and firm step against three of Kenya’s top bank chiefs, including Co-operative Bank Group Managing Director and CEO Gideon Muriuki.
Prosecutors say Muriuki, along with KCB’s Paul Russo and NCBA’s John Gachora, failed to report suspicious transactions linked to the alleged theft of more than Sh363 million from First Assurance Investment Company Limited.
The case centres on Salim Mohamed Busaidy, a former director of the firm and one-time nominated Member of the County Assembly. Authorities accuse him of stealing Sh363.3 million between May 2018 and April 2024 by using his position and access to company accounts held at the three banks.
He faces 120 counts, including conspiracy to defraud, stealing, and acquiring proceeds of crime. He has denied the charges and was released on bond.
Prosecutors are not accusing the bank CEOs of taking the money themselves. Instead, they face charges under the Proceeds of Crime and Anti-Money Laundering Act for failing to report suspicion regarding those funds.
The law requires banks and their top officers to flag unusual movements of money that may come from crime.
The DPP says the CEOs did not meet that duty, even as large sums moved through accounts at Co-op Bank, KCB and NCBA over several years.This move marks a shift. In the past, regulators often settled for fines against banks that breached anti-money laundering rules.
Now the DPP is holding the individual heads of institutions personally accountable. The summons required the three CEOs to appear before a Milimani court in Nairobi on 11 August 2026 to take plea.
Co-operative Bank CEO Muriuki moved quickly to the High Court. Justice Gregory Mutai issued temporary orders stopping their arrest, charging and prosecution pending a full hearing of their challenge. The court also stayed related criminal proceedings. The bank has publicly confirmed it obtained these orders.
The development has sent a clear signal through the banking sector. For years, questions have lingered about how effectively institutions monitor and report suspicious activity. By naming the CEOs directly, prosecutors are underlining that the responsibility sits at the highest level.
Whether the courts ultimately uphold the charges or the High Court protection holds, the case puts the spotlight on how seriously Kenya’s banks treat their anti-money laundering obligations.
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