From reformer to suspect: Karakacha named in Sh309 million insurance fraud

Albert Karakacha, the chairman of the Matatu Owners Association, is now facing serious fraud charges.

Karakacha, who has been a strong voice against corruption since becoming chairman in June 2023, was charged along with seven other people in a case involving Sh309 million said to have been stolen from Invesco Assurance Company.

The accused appeared at Milimani Law Courts before Principal Magistrate Paul Mutai and denied three charges of conspiracy to defraud. The others charged include Compliant Insurance Agency, Daniel Wekesa Nalyanya, Michael Ng’ang’a Kibara, Ruth Waangari Mwasalu, Antony Githinji Ngerere, Hilda Wambui Karanja, and Lameck Gisore Ongere.

According to the charge sheet, the fraud is said to have taken place between April 26 and August 13, 2024. It is claimed that the accused, together with other unnamed people, worked together to steal Sh309,207,570 from Invesco Assurance.

The money was allegedly sent illegally into the account of Compliant Insurance Agency under the false claim that it was for premium payments. The court has scheduled the case for mention on June 12, when further directions will be given.

What makes this situation more troubling is Karakacha’s background and the promises he made to clean up the matatu industry. When he became chairman of the Matatu Owners Association, he promised reforms and spoke loudly about the need to deal with corruption. He even said he would work closely with anti-corruption bodies to help stop dishonest dealings in the transport sector.

During his swearing-in, he said clearly that he wanted to help reduce corruption by involving anti-graft agencies.

Now, barely a year later, Karakacha finds himself being accused of taking part in the kind of corruption he once spoke strongly against. This raises serious questions about whether his earlier statements were genuine or just meant to win public support.

The amount of money involved also makes the case very serious, especially considering the difficult financial situation in the country.

Many Kenyans depend on the matatu industry for transport and employment, and the involvement of the MOA chairman in such a case could shake public trust.As the case proceeds, many eyes will be watching to see what evidence is presented and whether justice will be served.

The matatu industry has long struggled with issues of corruption and poor management, and if the person at the top is involved in fraud, it sends the wrong message to others in the sector.