Investigations led to the arrest of six individuals connected to this case, including Faulu Bank officials Amos Mugweru Mwangi, Peter Kefa Onsongo, and Tom Jaseme, as well as businesspeople and the auctioneer responsible for the property’s sale. They face charges ranging from conspiracy to defraud to forgery and theft under Section 275 of the Penal Code
Faulu Bank, a subsidiary of Old Mutual East Africa Group, stands accused of forging the signature of 80-year-old widow Alice Wanjiru Wamwea to fraudulently auction her property, initially pledged as security on a paid loan. This accusation emerged as lead investigator Chief Inspector Isaack Ogutu testified in the Milimani court, citing a forensic document examiner’s report confirming the alleged forgery.
Alice Wamwea had borrowed Ksh 52 million from Faulu Bank to develop her Nairobi property, LR NO 209/11315, with the funds disbursed in two parts at a 12% annual rate over 54 months. She claims she repaid the loan as agreed but, despite multiple requests, Faulu Bank refused to provide her bank statements. Sensing something amiss, she secured an alternative loan from Co-operative Bank in June 2018, intending to settle her debt with Faulu.
However, Faulu allegedly obstructed this process by withholding key documents, including the title deed, and proceeded to auction her property for Ksh 85 million, asserting that she had failed to settle a purported loan balance of Ksh 65 million. Wamwea insists she never signed for this additional loan, as revealed in her court testimony.
Chief Inspector Ogutu testified that Faulu Bank opened a “holding account” for Wamwea’s loan repayments, where over Ksh 58 million had been deposited. However, records show that funds were instead diverted to various other accounts, leaving the original loan unpaid.
Investigations led to the arrest of six individuals connected to this case, including Faulu Bank officials Amos Mugweru Mwangi, Peter Kefa Onsongo, and Tom Jaseme, as well as businesspeople and the auctioneer responsible for the property’s sale. They face charges ranging from conspiracy to defraud to forgery and theft under Section 275 of the Penal Code.
Alice Wamwea’s story is a chilling reminder of the potential vulnerabilities faced by elderly property owners. The case returns to court on November 28 for submission compliance, potentially marking a critical turning point in this high-stakes legal battle.
