Court orders fresh investigations into Police Sacco over theft allegations

The High Court has ordered a fresh investigation into the Kenya National Police Sacco (NPS DT 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, overriding previous orders that had granted the Directorate of Criminal Investigations (DCI) authority to investigate the case.

The ruling came after a review of an earlier order issued in January 2025, which had authorized the DCI to investigate the Sacco’s financial activities.

The Sacco filed an urgent application seeking to stop the DCI from proceeding with the investigation, arguing that the DCI’s involvement was outside its legal jurisdiction.

Through its lawyer, Cecil Miller, the Sacco sought orders to restrain the DCI from arresting or charging any board members and from continuing the investigation.

The Sacco also requested the court to block the DCI from accessing certain documents, including board records and tender information.

Miller emphasized that investigations into SACCOs should be handled by the SSFIU, a specialized unit under the Sacco Societies Regulatory Authority (SASRA).

 "The law is clear 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 documents related to procurement, tenders, and audits from 2019 to 2024.

The Sacco argued that the DCI’s investigation violated the Sacco Societies Act, which outlines specific procedures for overseeing SACCOs.

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 opposed to investigations, but these investigations must be carried out by the correct body, the SSFIU, in line with the Sacco Societies Act,” Atsiaya said.

Atsiaya also expressed concerns that the DCI’s actions could lead to 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 agreed with the Sacco ruling that the DCI’s actions were outside its legal scope and ordered that the SSFIU take over the investigation.