Metropolitan Sacco officials freed on Ksh70K cash bail in Ksh14.5B case
By Zipporah Ngwatu, May 26, 2026A Nairobi court has freed 16 officials charged with conspiracy to defraud Ksh14.5 billion from the Metropolitan National Sacco on a Ksh70,000 cash bail with an alternative of a bond of Ksh200,000.
Milimani Magistrate Daisy Mutai, on Tuesday, May 26, 2026, freed the officials after they denied different charges lodged against them, including that of conspiracy to defraud the teachers’ deposit-taking union of billions of money.
The accused persons, most of whom are retired teachers, have also been charged with unlawful investment of Sacco funds, failure to maintain proper books of accounts, failure to establish a credit committee, and failure to appoint an internal auditor as required under cooperative regulations.
Those charged include Christopher Kahuno Karanja, John Kimani Munyaka, James Kamau Ngugi, Patrick K. Kagwi, Francis Kamau Nganga, Benson Mwangi Nganga, Paul Kaberere, Geoffrey Wamae and Duncan Chege. Others are George Mwihia, Daniel Lee Kamau, Joseph Gachunga Mwaura, Boniface Muthama, Rosemary Chege and Edward Duncan.
However, three individuals, Samuel Ndungu Muiruri, Francis Wachiuru Mbae, and Lucy Kabiru, did not appear for the plea taking, prompting Magistrate Mutai to issue a warrant of arrest against them.
The accused persons, through their lawyers, urged the court to release them on lenient bond and bail terms, arguing that most of them were retired teachers who are not able to raise huge amounts of money.
Lawyer Gordon Ogado representing the victims who are members of the Sacco informed the court that a 2023 investigative report had established large-scale misuse of Sacco funds, and the Sacco members had been informed of potential surcharge proceedings.
He told the court that the accused failed in their supervisory duties, which contributed to the alleged financial loss by the accused persons, adding that they bore responsibility for their actions.
“Your honour, there is a breach of trust in failing to perform their duties as appointed by the members of the Sacco, who are the victims in this case, and that puts them in a question mark,” lawyer Ogado told the court.
Notably, lawyer Ogado told the court that the alleged financial loss represented savings contributed by ordinary members over years of trust, which were now under scrutiny due to governance failures.
According to the charges, the accused persons are said to have authorised an investment of about Ksh1.014 billion in land acquisition in Kitengela, Machakos County, between 2014 and 2021.
The matter will be mentioned on June 22, 2026, for further directions as the trial proceeds.