Co-op Bank secures court orders halting prosecution of CEO

Justice Gregory Mutai on Friday certified as urgent a constitutional petition filed by Co-operative Bank and Muriuki against the Director of Public Prosecutions (DPP), the Directorate of Criminal Investigations (DCI) and three other respondents.

Pending the hearing of the case, the judge restrained the DPP and DCI from arresting, charging or prosecuting the bank and its chief executive and stayed criminal proceedings against them.

The orders come days after the Office of the Director of Public Prosecutions (ODPP) charged the chief executives of NCBA Bank, KCB Bank and Co-operative Bank with alleged failure to report suspicious transactions relating to proceeds of crime, contrary to the Proceeds of Crime and Anti-Money Laundering Act.

The three bank chiefs had been summoned to appear before the Chief Magistrate's Court on August 11, 2026, to take plea.

The charges stem from investigations into the alleged theft of Ksh.363,420,459 from First Assurance Investment Company Limited.

Prosecutors allege that a former nominated Member of the County Assembly (MCA), who served as a director of the company alongside Lamu Governor Issa Abdalla Issa, fraudulently withdrew the funds between May 18, 2018 and April 30, 2024 using his position and access to the company's accounts held at NCBA Bank, KCB Bank and Co-operative Bank.

Deputy Director of Public Prosecutions Nora Otieno and Principal Prosecution Counsel Willy Momanyi told the court that following investigations, the DPP approved 120 criminal charges against the former MCA.

The charges include three counts of conspiracy to defraud, two counts of stealing, 114 counts of making a document without authority and one count of acquisition of proceeds of crime.

In the constitutional petition, Co-operative Bank and Muriuki successfully argued for interim conservatory orders pending the hearing of their application.

The High Court barred the DPP and DCI from arresting, charging or prosecuting the petitioners in Milimani Criminal Case No. E451 of 2026, Republic v Salim Mohammed Busaidy & 6 Others, or in any other criminal proceedings arising from the impugned investigations.

Justice Mutai directed the petitioners to serve the court documents on the respondents within three working days, after which the respondents will have 14 days to file their responses.

The matter will be mentioned on October 12, 2026, for compliance and further directions.