Three top bank CEOs failed to appear before a Nairobi court on Tuesday after obtaining High Court orders stopping their prosecution over alleged failure to report suspicious transactions linked to Sh363.4 million.
The three bank chiefs were due to appear before Milimani Chief Magistrate Gethi Kibiru to answer criminal charges after the Director of Public Prosecutions approved their prosecution.
Instead, lawyers representing the executives told the magistrate that their clients had moved to the High Court on Friday August 7,2026 and obtained conservatory orders barring the lower court from proceeding with the criminal case.
The executives are NCBA Chief Executive Officer John Gachora, KCB Chief Executive Officer Paul Russo and Co-operative Bank Chief Executive Officer Gideon Muriuki.
The case also involves First Assurance Investment Ltd director Salim Mohammed Busaidy and the three banks.
The matter came up for mention on Tuesday after the prosecution obtained summons requiring accused persons listed as numbers two to seven to appear before the magistrate for plea taking on over 114 criminal charges.
State counsel Willy Momanyi told the court that the summons had been served.
“The matter was coming up for mention. There were summons issued to No. 2 to 7 and I can confirm they were all served,” Momanyi said.
However, defence lawyers informed the court that the High Court had intervened and issued orders staying proceedings and restraining the arrest or prosecution of some of the accused persons.
For the Co-operative Bank and its CEO, lawyer holding brief for Gideon Muriuki and the bank, told the court that orders had been obtained from the High Court on Friday.
“On Friday we obtained conservatory orders from the High Court staying proceedings in this court and prohibition of arrest against the second and third accused person and a third order prohibiting this court from taking plea pending hearing and determination of this matter,” the lawyer said.
The defence further told the court that similar orders had been obtained in respect of other accused persons.
“For the third and fourth accused also obtained orders from the High Court restraining arrest, detention or continuation of any proceedings. They also obtained orders staying the operation of the summons,” the lawyer said.
The court was also told that orders had been issued concerning accused persons six and seven, staying further proceedings.
“For the 6 and 7 the High Court granted orders staying any further proceedings in this court or any other proceedings in this matter. All orders were served,” the defence said.
The defence consequently argued that the proceedings before the magistrate’s court had been stayed.
“In the circumstances these proceedings have been stayed,” the lawyer told the court.
But the prosecution said it had not received all the orders cited by the defence.
Momanyi told the court that the State had only been served with orders concerning KCB and its chief executive Paul Russo.
“We are yet to receive the orders the counsel has alluded to for the 2nd and 3rd and 6th and 7th but we received orders from Paul Russo and KCB Bank,” Momanyi said.
He asked the defence lawyers to serve the remaining orders so that the prosecution could verify their authenticity.
“We have asked the counsel to serve so that we can ascertain the authenticity of the orders which we have not been served,” he said.
The magistrate granted the prosecution more time to confirm service and authenticate the High Court orders before issuing further directions.
The matter will be mentioned on Wednesday August 12 to confirm whether all the orders have been served and verify their contents.
The High Court orders were issued by Justice Gregory Mutai in a petition filed by Co-operative Bank of Kenya Limited and Gideon Muriuki against the DPP, the Director of Criminal Investigations and other parties.
The orders, issued on August 7, certified the application urgent and admitted it for hearing during the court recess.
Justice Mutai issued an interim conservatory order restraining the DPP and DCI from arresting, presenting for plea taking, charging or prosecuting the applicants in Milimani Criminal Case E451 of 2026.
The judge also stayed further proceedings in the criminal case pending the hearing of the application.
The High Court directed that the petition and applications be served on the respondents and interested parties and scheduled the matter for October 12 for compliance and further directions.
The criminal case stems from investigations into alleged financial irregularities involving First Assurance Investment Ltd.
According to the charge sheet dated August 3, 2026, Busaidy, Gachora, Russo and Muriuki face various charges including conspiracy to defraud, stealing, making documents without authority, failure to report suspicion regarding proceeds of crime and acquisition of proceeds of crime.
The prosecution alleges that the offences were committed between May 18, 2018 and April 30, 2024 in Nairobi.
One count alleges that Busaidy and Gachora conspired to defraud First Assurance Investment Ltd of Sh171,579,664.
Another conspiracy charge involving Busaidy and Russo concerns Sh136,329,745, while an additional allegation involving Busaidy and Muriuki relates to Sh55,411,050.
Busaidy separately faces an allegation of stealing Sh363,320,459 from First Assurance Investment Company Ltd.
The prosecution alleges that the money came into his possession by virtue of his position as a director and access to the company’s accounts held at Co-operative Bank, NCBA and KCB.
Russo and KCB are also accused of stealing Sh136,329,745 allegedly from a First Assurance account domiciled at KCB.
The three bank CEOs and their respective institutions further face allegations of failing to report suspicious or unusual transactions involving First Assurance accounts.
The prosecution alleges that Russo and KCB failed to report unusual transactions involving one account, while similar allegations have been made against Gachora and NCBA concerning another account.
The DPP alleges that the failure to report suspicion regarding proceeds of crime contravened Section 5 as read with Section 44(2) of the Proceeds of Crime and Anti-Money Laundering Act.
At an earlier appearance, Momanyi told the court that the State had no objection to the accused persons being released on bail or bond but sought conditions including surrender of passports and restrictions on contact with witnesses.
The prosecution also sought summons requiring accused persons two to seven to appear before the court.
The criminal allegations have not been proved and the accused persons remain innocent unless and until convicted by a court of law.
