Written by Kelly Were
Seven suspects implicated in a massive insurance fraud case involving over Ksh. 309 million have been released on bond following their arraignment at a Nairobi court.
Each accused person was granted a bond of Ksh. 1 million or an alternative cash bail of Ksh. 300,000.
The case revolves around the alleged illegal transfer of insurance premiums from Invesco Assurance Company Limited to Compliant Insurance Agency Limited between April 26, 2024, and August 31, 2024.
The funds—totaling Ksh. 309,207,570—were reportedly collected from 27 Invesco branches across the country and irregularly deposited into the Compliant Insurance Agency’s account at M Oriental Bank, Sameer Park Branch.
The suspects, who include company directors, a chief finance officer, a senior accountant, and several insurance agency proprietors, face two main charges: conspiracy to commit insurance fraud and illegally vesting insurance company assets in the name of another entity, in contravention of Sections 204B and 47 of the Insurance Act (Cap 487) and Section 23 of the Penal Code (Cap 63).
Those charged include Albert Karakacha Muhavani, Daniel Wekesa Nalyanya, Michael Ng’ang’a Kibara, Ruth Wangari Mwasalu, Antony Githinji Ngorere, Hilda Wambui Karanja, and Lameck Gisore Ongere.
The court also entered a plea of not guilty on behalf of the corporate entities—Invesco Assurance Company Limited and Compliant Insurance Agency Limited—after no individual stepped forward to represent them.
Defense counsel argued that charges against the companies were defective, contending that clients could not be held liable for the actions of individuals within those companies.
They also clarified that Compliant Insurance Agency Limited was not a company but an agency, challenging the basis of the charge.
The prosecution countered that while companies cannot commit crimes independently, their directors and officers could be held accountable for criminal conduct carried out under their leadership.
Following deliberations, the court accepted the defense’s application for lenient bond terms, noting that the accused had cooperated with investigators and previously honored police bail without incident.
However, the court also imposed additional conditions, requiring the accused to deposit their passports to mitigate flight risk concerns raised by the prosecution.
The matter is scheduled for mention on June 12, 2025, for pre-trial directions, with several prosecution witnesses—including Francis Mungai Kiharia, Ann Chelangat, Shamim Kimitei, and James Kingau Muriuki—expected to testify.
