Three former Sacco managers charged over Sh40m fraud
Courts
By
Nancy Gitonga
| Dec 21, 2025
Three former officials of Afya Sacco Society Limited have been arraigned at the Milimani Law Courts, charged with conspiring to defraud the cooperative of more than Sh40 million through fraudulent deposits and withdrawals allegedly carried out over a four-year period.
The accused—Evans Mung’ahu Kola, Fredrick Kuya Libako and Mumina Mutinda Ingu’i—appeared before Milimani Chief Magistrate Lucas Onyina, where they denied multiple charges related to fraud, theft and money laundering.
According to the charge sheet filed by the Office of the Director of Public Prosecutions (ODPP), the three are accused of conspiring to defraud Afya Sacco Society Ltd of Sh40,169,165.69 between April 20, 2021, and January 31, 2025.
The prosecution alleges that while working with another person not before the court, the accused created fraudulent deposits and withdrawals through Front Office Service Activity (FOSA) accounts, falsely presenting the transactions as genuine, thereby causing the Sacco massive financial loss.
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“On diverse dates between April 20, 2021, and January 31, 2025, at Afya Sacco Society Ltd in Nairobi CBD, jointly with another not before court, the accused conspired with intent to defraud by creating fraudulent deposits and subsequent withdrawals from FOSA accounts,” the charge sheet reads.
In a separate count of stealing by servant, Kola—a former manager of Afya Micro Credit Activities (AMCA) at Afya Sacco—is solely accused of stealing the entire Sh40.1 million, which allegedly came into his possession by virtue of his employment.
Libako alone faces an additional charge of stealing contrary to Section 268 as read with Section 275 of the Penal Code, with prosecutors claiming he stole the same amount through FOSA accounts belonging to the Sacco.
The accused were further charged under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) for acquiring and using proceeds of crime.
The prosecution alleges that Kola and Libako jointly acquired Sh10,714,999.72, which they allegedly knew or ought to have known was part of the proceeds of crime deposited into a specified FOSA account.
Kola was also accused of jointly using more than Sh24.9 million between December 2021 and May 2025, and an additional Sh1.7 million between January 2022 and August 2023—funds the prosecution says were proceeds of crime.
In another count, Kola alone was accused of using Sh2,801,616 between May 2021 and August 2024, funds prosecutors say were unlawfully obtained and laundered through Sacco accounts.
All the accused persons pleaded not guilty to the respective counts.
“A plea of not guilty is entered for each of the accused persons in their respective counts,” Chief Magistrate Onyina ruled.
Through their advocate, Munge, the accused asked the court to release them on bond, arguing that they posed no flight risk.
“All the accused persons have impeccable records. None of them is a flight risk, and they will comply with all orders set by the court,” Munge submitted.
The prosecution did not oppose their release on bond.
The court granted each accused a bond of Sh4 million or a cash bail of Sh2 million, with one surety of a similar amount.
The case will be mentioned on January 6, 2026, for pre-trial directions.