The case stems from concerns raised by Sacco members, who petitioned both the DCI and the Ethics and Anti-Corruption Commission (EACC) to investigate alleged financial mismanagement. A letter to the Sacco Societies Regulatory Authority (SASRA), dated 3rd September 2024, highlighted grievances over governance, transparency, and accountability
The leadership of the Kenya Police Deposit-Taking Sacco is facing mounting pressure after thousands of members urged the Directorate of Criminal Investigations (DCI) to probe alleged financial irregularities. In an attempt to block the investigation, the Sacco swiftly sought a court injunction to prevent scrutiny. This legal battle pits the Sacco officials against the DCI’s Economic and Commercial Crimes Unit (ECCU) over the question of whether a suspect has the right to dictate which government agency should investigate them.
Court Halts DCI Probe
On 23rd January 2025, High Court Judge Justice Alexander Muteti ruled that the ECCU should cease investigating, arresting, or prosecuting the Sacco officials. He stated that only the Sacco Societies Fraud Investigations Unit (SSFIU), which also falls under the DCI, has the legal mandate to probe fraud in Saccos. Muteti emphasised that SSFIU should have been the first point of reference for any fraud-related complaints in Saccos. Revising an earlier ruling from 14th January, he ordered that all fraud investigations concerning the Sacco be handled by SSFIU, pending a full hearing.
Allegations of Financial Mismanagement
The case stems from concerns raised by Sacco members, who petitioned both the DCI and the Ethics and Anti-Corruption Commission (EACC) to investigate alleged financial mismanagement. A letter to the Sacco Societies Regulatory Authority (SASRA), dated 3rd September 2024, highlighted grievances over governance, transparency, and accountability.
Through Rene & Hans Advocates, representatives Michael Orita, Gregory Ogola, and Robert Odongo claimed the Sacco’s board had arbitrarily suspended some members and engaged in questionable financial practices. They cited the purchase of a mobile banking system for KSh 600 million, with an additional KSh 300 million spent on maintenance, despite the system failing to function as expected.
“There is an urgent need for a forensic audit into the financial status of the Sacco, as well as a lifestyle audit of its directors,” the letter read. Members further questioned excessive budget allocations without clear explanations.
Sacco’s Defence: DCI Lacks Jurisdiction
In response, the Sacco, represented by lawyer Cecil Miller, challenged the DCI’s authority to investigate the case. It argued that only SSFIU or SASRA should handle such matters under the Sacco Societies Act.
Miller also claimed that the ECCU’s involvement violated the Sacco’s right to confidentiality, as protected by the Data Protection Act, 2019. He warned that releasing sensitive financial data could jeopardise depositors’ security. Furthermore, the Sacco raised concerns over a potential conflict of interest, noting that the investigating officer, Inspector Duncan Maina, is himself a member of the Sacco.
High-Stakes Battle Over Billions
With over KSh 34 billion in deposits and assets valued at KSh 58 billion, the Kenya Police DT Sacco is one of the country’s largest deposit-taking institutions. The outcome of this legal battle could have far-reaching implications on its operations, reputation, and regulatory oversight. As the court deliberates on the next steps, the spotlight remains on the Sacco’s financial dealings—and whether justice will be served.
