Bernard Kariuki Ngugi, a former Credit Control Officer at an insurance company, has been charged over the suspected theft of Sh89.5 million in a case involving alleged manipulation of financial systems and the diversion of company funds through three firms that investigators say had no legitimate business dealings with his former employer.
The case has raised questions about how millions of shillings were allegedly diverted over several years using access to the company’s financial systems.
Detectives from the Banking Fraud Investigations Unit (BFIU) established that the suspected scheme ran from 2018 to November 2025, during which Ngugi allegedly used his position to facilitate payments to companies that were not entitled to receive the money.Investigators identified Auris General Merchants Ltd, Donbitz Global Limited and Pedram Global Limited as the three companies allegedly used to channel the funds.
According to the investigation, the firms had no legitimate business relationship with the insurance company, raising concerns about how they were introduced into its payment system and how the transactions were approved.
The investigators established that Sh35.27 million was allegedly channelled through Auris General Merchants Ltd, while Donbitz Global Limited received Sh32.68 million.
A further Sh21.63 million was allegedly transferred through Pedram Global Limited.
The three amounts total approximately Sh89.58 million, matching the sum Ngugi is accused of stealing from his former employer.
Detectives believe the suspected scheme involved manipulating the company’s financial systems to introduce the three firms into the payment process.
This allegedly created a way for company money to be transferred to entities that had no legitimate claim to the payments.
The investigation also found that withdrawals and transfers were carried out in circumstances that investigators believe were intended to make it difficult to trace the origin and movement of the money.
The transactions formed part of the financial trail examined by detectives as they sought to establish how the funds were moved and who was responsible.
After completing their investigations, detectives forwarded the file to the Office of the Director of Public Prosecutions (ODPP) for review.
The prosecution agreed with the recommendation to charge Ngugi with theft by servant, money laundering and other related offences.
He was subsequently traced and arrested in Nairobi before being presented at the Milimani Law Courts on Friday, October 23, 2026, to answer to the charges.
Ngugi pleaded not guilty to all the charges. The court released him on a bond of Sh2 million, with an alternative cash bail of Sh800,000 as he awaits the next stage of the proceedings.
His release on bond does not amount to an acquittal, and the case will proceed through the court process, where the prosecution will be required to present evidence supporting the charges against him.
The matter is scheduled for a pre-trial mention on November 10, 2026, when further directions are expected on how the case will proceed.
The Directorate of Criminal Investigations has maintained that it will continue pursuing complex financial crimes, including cases involving suspected fraud, money laundering and the misuse of positions of trust.
For the insurance company, the central issue remains how the alleged diversion of nearly Sh90 million was carried out over several years and whether the evidence gathered by investigators will establish responsibility in court.
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