The High Court has ordered a fresh investigation into the Kenya National Police Sacco over allegations of embezzlement and fraud involving its board of directors. Justice Alexander Muteti ruled that the Sacco Societies Fraud Investigations Unit (SSFIU) should handle the probe, overturning previous orders that had granted the Directorate of Criminal Investigations (DCI) authority to investigate the case.
The ruling followed a review of an earlier order issued in January, which had authorised the DCI to examine the Sacco’s financial activities. The Sacco had filed an urgent application to halt the DCI’s investigation, arguing that its involvement was beyond its legal jurisdiction.
Through its lawyer, Cecil Miller, the Sacco sought court orders to restrain the DCI from arresting or charging any board members and from proceeding with the probe. The Sacco also requested the court to bar the DCI from accessing specific documents, including board records and tender information.
Miller emphasised that investigations into SACCOs should be conducted by the SSFIU, a specialised unit under the Sacco Societies Regulatory Authority (SASRA). “The law is clear that the SSFIU is mandated to investigate fraud in SACCOs. The DCI’s involvement in this matter risks damaging the Sacco’s operations and its members’ interests,” Miller argued in court.
In January 2025, the DCI, through investigating officer Inspector Duncan Maina, obtained a court warrant to seize Sacco records, including procurement, tender, and audit documents from 2019 to 2024.
The Sacco argued that the DCI’s investigation contravened the Sacco Societies Act, which outlines specific procedures for SACCO oversight.
In court documents, Sacco CEO Solomon Atsiaya stated that while the Sacco was not opposed to an investigation, it must be conducted in accordance with the law.
“The directors of the Sacco are not against investigations, but these must be carried out by the correct body—the SSFIU—in line with the Sacco Societies Act,” Atsiaya said. Atsiaya further expressed concerns that the DCI’s involvement could cause panic among Sacco members and trigger a financial crisis.
“If the DCI continues with this probe, it could lead to a ‘bank run,’ which would harm the Sacco and its members,” Atsiaya stated. Justice Muteti ruled that the DCI’s actions exceeded its legal scope and ordered the SSFIU to take over the investigation.
