The High Court of Kenya has issued an order staying criminal proceedings against Michael Moragia Nyachae, son of the late politician Simeon Nyachae. Nyachae is charged with stealing KSh1.2 million from Sansora Group Limited, a family-owned company. The court's decision was made after Nyachae filed a constitutional petition arguing that the prosecution had been launched for an improper purpose.
Justice Nabil Orina of the High Court granted the stay orders and directed the Director of Public Prosecutions (DPP) and the Directorate of Criminal Investigations (DCI) to file their responses within seven days. The matter is scheduled for mention on October 19 for further directions. Nyachae, who serves as chairman of the Development Bank of Kenya, was charged with stealing funds from Sansora Group Limited, one of several businesses associated with the Nyachae family.
The charge sheet alleges that the theft occurred on various dates between March 28, 2019, and September 28, 2021, in Kisii County. Nyachae was released on a cash bail of Sh50,000. In his petition, Nyachae stated that he had been actively involved in the affairs of multiple family companies over the years, including Sansora Limited, Sansora Bakery, Sansora Investment Limited, and Kabansora Limited.
Nyachae told the court that in March 2023, acting on instructions from his mother, Martha Nyachae, he lodged a complaint with the DCI requesting investigations into the conduct of those businesses between 2018 and 2021. The complaint raised concerns about alleged irregularities, including forged minutes, resolutions, purported meetings his mother denied attending, and unauthorised changes to company directorship and shareholding.
Nyachae's constitutional argument is based on Article 157(11) of the Constitution, which he claims has been breached. He stated that he was not seeking to avoid accountability but rather to ensure that the criminal process is not deployed for a collateral purpose. His lawyers had written to the relevant authorities raising concerns about how his original complaint was being handled, but he was charged instead.
The case is unfolding against the backdrop of a wider family dispute that began after Simeon Nyachae died on February 1, 2021. His last will and testament, dated September 9, 2015, named three family members as executors and identified his three widows among his surviving relatives. Disagreements over the management of the family's businesses and assets have persisted since his death.
The court's decision to halt the criminal proceedings is a significant development in the case. The DPP and DCI have seven days to file their responses, and the matter will be mentioned on October 19 for further directions. The case has raised concerns about the use of the criminal process in family disputes and the need for accountability in the management of family businesses.
Key points
- The High Court has suspended a KSh1.2 million theft case against Michael Nyachae, son of late politician Simeon Nyachae.
- Nyachae's petition argues that the prosecution was launched for an improper purpose, breaching Article 157(11) of the Constitution.
- The case is part of a wider family dispute over the management of the Nyachae family's businesses and assets following Simeon Nyachae's death in 2021.
