A former Credit Control Officer at an insurance company, Bernard Kariuki Ngugi, has been arrested and arraigned for allegedly stealing Ksh 89,579,274 from his former employer. According to investigations by detectives from the Banking Fraud Investigations Unit (BFIU), Ngugi exploited his privileged access to the company’s financial systems to orchestrate the diversion of millions of shillings through three companies: Auris General Merchants Ltd, Donbitz Global Limited, and Pedram Global Limited.
Investigations established that between 2018 and November 2025, Ngugi manipulated the company’s financial systems to introduce the three companies into the payment chain, paving the way for the diversion of corporate funds. The three entities had no legitimate business relationship with the insurance company and were not entitled to receive the payments, raising questions about how they were introduced into the company’s payment system.
A total of Ksh 35.27 million was channelled through Auris General Merchants Ltd, Ksh 32.68 million through Donbitz Global Limited, and a further Ksh 21.63 million through Pedram Global Limited. Detectives also established that withdrawals and transfers were made in circumstances designed to conceal the origin and movement of the funds.
Following the investigations, the file was forwarded to the Office of the Director of Public Prosecutions (ODPP), which concurred with the recommendation to charge Ngugi with theft by servant, money laundering, and other related offences. Ngugi was subsequently traced and arrested in Nairobi before being arraigned at Milimani Law Courts on Friday, October 23, 2026.
Ngugi pleaded not guilty to all the charges and was released on a bond of Ksh 2 million, with an alternative cash bail of Ksh 800,000. The case is scheduled for a pre-trial mention on November 10, 2026. The Directorate of Criminal Investigations (DCI) reiterated its commitment to pursuing complex financial crimes, following the money trail and holding accountable those suspected of abusing positions of trust for personal gain.
The Kenyan insurance company has not been named, but it is understood that the company cooperated fully with the investigations. The DCI's efforts to combat financial crimes have been praised by the public and stakeholders, who are eager to see those responsible held accountable.
The case highlights the need for companies to implement robust internal controls and monitoring systems to prevent similar incidents of insider fraud. It also underscores the importance of collaboration between law enforcement agencies and the private sector in investigating and prosecuting complex financial crimes.
Key points
- A former Credit Control Officer at a Kenyan insurance company has been arrested and arraigned for allegedly stealing Ksh 89.5 million through a complex scheme involving digital manipulation and suspicious financial transactions.
- The suspect, Bernard Kariuki Ngugi, allegedly exploited his privileged access to the company’s financial systems to orchestrate the diversion of millions of shillings through three companies.
- Ngugi was released on a bond of Ksh 2 million, with an alternative cash bail of Ksh 800,000, and the case is scheduled for a pre-trial mention on November 10, 2026.
