A Nairobi court has set June 23, 2025 as the hearing date for the Sh82.8 million fraud case involving five former senior officials of the Kenya Union of Savings and Credit Cooperatives Ltd (KUSCCO).
The case centers on allegations of misappropriation of funds by the Sacco officials that were intended for the purchase of land in Nairobi.
Milimani Senior Principal Magistrate Dolphina Alego issued the order on Monday after the defense team, led by lawyer Apollo Mboya, confirmed that they had received all the necessary documents from the prosecution, including witness statements.
Mboya informed the court that the documents had been duly signed for, in accordance with the court’s previous directives.
With all parties now in possession of the required materials, the magistrate directed that the case proceed to full hearing on the scheduled dates without further delay.
The accused in the case are Jackline Omolo, the former legal officer at KUSCCO; George Magutu Mwangi, former national chairman; George Otieno Ototo, former managing director; George Ochola Owino, former finance manager; and Mercy Muthoni Njeri, who previously served as the head of the cooperative’s radio project.
All five have pleaded not guilty to an array of charges, which include stealing by directors, money laundering, making false documents, and conspiracy to defraud and conceal proceeds of crime.
According to the prosecution, the accused persons diverted Sh82,826,000 between October 2020 and April 2022.
These funds had been earmarked for the purchase of a parcel of land identified as LR No. 23269/35, but were instead funneled into a different account.
The prosecution further alleges that the accused attempted to disguise the source of the money by entering into a fraudulent land sale agreement, fully aware that the funds originated from illegal activity.
In February 2024, the Cabinet Secretary for Cooperatives and MSMEs, Wycliffe Oparanya, handed over a forensic audit report to the Directorate of Criminal Investigations (DCI) to support ongoing legal proceedings.
The audit, conducted by PricewaterhouseCoopers (PwC), revealed widespread financial mismanagement within KUSCCO, including Sh3.7 billion in non-performing loans, Sh797.9 million in inflated profits reported over six years, and irregular commission payments totaling Sh2.7 billion.
Following the revelations, the five accused were arrested in February and later released on bond.
George Magutu Mwangi, Jackline P. Atieno, and George Otieno Ototo each secured release on a bond of Sh10 million or an alternative cash bail of Sh3 million.
George Ochola Owino was granted bond at Sh7 million or cash bail of Sh3 million, while Mercy Muthoni Njeri was released on a Sh7 million bond or a cash bail of Sh2.5 million.
