Director Charged With Defrauding DTB Bank Over Sh30M in Fraudulent Loan Scheme

Samuel Mutai, the Director of Kipsigis Stores Ltd, was arraigned before Chief Magistrate Lucas Onyina at a Nairobi court on Monday, facing charges of defrauding Diamond Trust Bank (DTB) Limited of Sh30.8 million through a fraudulent loan scheme.

Mutai pleaded not guilty to the charges, which include obtaining loans using multiple collaterals and illegally disposing of mortgaged assets.

The prosecution alleges that on July 31, 2013, at DTB’s branch in Kericho County, Mutai, as director of Kipsigis Stores Ltd, conspired with others to secure loans amounting to Sh30,888,000, which he subsequently defaulted on.

In addition to the fraud charges, Mutai faces accusations of disposing of mortgaged properties—two Ashok Avia trucks and two Isuzu FVR trucks—belonging to DTB without the bank’s consent.

The fraudulent disposal is said to have occurred on August 15, 2018, within the Republic of Kenya.

Mutai was jointly charged with Alfred Kipkorir Mutai and John Fernandes Muiga, who failed to appear in court for plea taking.

Consequently, Magistrate Onyina issued warrants of arrest for the two absent co-accused and Kipsigis Stores Ltd, which was also named in the case.

The accused face three additional counts of similar offenses related to the fraudulent handling of mortgaged property.

During the hearing, Mutai, through his lawyer, appealed for leniency, arguing that he posed no flight risk and had fully cooperated with the investigation.

“I am a family man and willing to abide by any terms set by the court,” Mutai stated.

He further claimed that Kipsigis Stores Ltd had since been liquidated and that he was currently unemployed, casting himself as a victim caught in a “web of offenses committed by other persons.”

Mutai went as far as suggesting that DTB directors should be the ones facing arrest, alleging that he had been unlawfully targeted.

He added that he had spoken to the investigating officer, who was reportedly pursuing the “actual directors” of the company.

The court granted Mutai’s release on a bond of Sh1 million with a surety or an alternative cash bail of Sh500,000.

The case has drawn attention due to the significant sum involved and the allegations of misconduct tied to one of Kenya’s prominent financial institutions.

The prosecution is expected to proceed with the case against Mutai, while authorities work to apprehend Kipkorir and Fernandes to ensure all accused parties answer to the charges.