Samuel Mutai, the director of Kipsigis Store Limited, has been charged in a Nairobi court with defrauding Diamond Trust Bank Limited of Sh30.9 million through fraudulent loans.
Appearing before Milimani Chief Magistrate Lucas Onyina, Mutai denied the five charges, which include conspiracy to defraud and the fraudulent disposition of mortgaged property.
These charges were brought against him by the Office of the Director of Public Prosecutions (ODPP).
According to the charge sheet, Mutai, along with two co-accused individuals Alfred Kipkorir Mutai and John Fernandes Muigai allegedly conspired to defraud Diamond Trust Bank.
The trio is accused of committing these offences on July 31, 2013, at a Diamond Trust Bank branch in Kericho County.
They are alleged to have secured loans totaling Sh30.8 million by offering several collaterals but later defaulted on the loans.
The charges further state that they fraudulently disposed of four mortgaged motor vehicles, including trucks, without the bank’s consent, resulting in a significant financial loss for the institution.
In addition to the conspiracy charge, Mutai and his co-accused face further allegations of unlawfully disposing of mortgaged property, compounding the fraudulent actions.
One of the charges relates to the disposal of a mortgaged vehicle, registration number KBV 200W, an Ashok Avia truck, on August 15, 2018, without the consent of Diamond Trust Bank.
Another charge accuses Mutai of disposing of a second mortgaged vehicle, registration number KBV 800T, also an Ashok Avia truck, on an unspecified date.
The third charge involves the unlawful disposal of a mortgaged vehicle, registration number KBX 165K, an Isuzu FVR truck, on November 9, 2020.
The fourth charge involves the disposal of a second Isuzu FVR truck, registration number KBX 162K, on November 17, 2020, again without the bank’s consent.
After denying the charges, Mutai’s lawyer, Moses Kurgat, requested lenient bond terms, arguing that Mutai is not a flight risk, as he has a family, including children in school, who depend on him.
However, Magistrate Onyina issued arrest warrants for the two co-accused individuals, Alfred Kipkorir Mutai and John Fernandes Muigai, as they failed to appear in court.
Mutai was granted a bond of Sh1 million with a surety of a similar amount, or an alternative cash bail of Sh500,000, on the condition that he provides one contact person.
The case has been scheduled for a pretrial conference on April 7, 2025.
