Ex-MCA Arraigned Over Alleged KSh 363 Million Fraud as Court Summons CEOs of Three Banks

A former company director and ex-nominated Member of the County Assembly (MCA), Salim Mohamed Busaidy, has been arraigned before a Nairobi court over an alleged KSh 363.4 million fraud involving funds belonging to First Assurance Investment Company Limited.

Busaidy, who previously served as a director of the company, was charged following investigations by the Directorate of Criminal Investigations (DCI) Financial Investigations Unit (FIU), which alleges that he fraudulently obtained KSh 363,420,459 between May 18, 2018, and April 30, 2024.

According to investigators, Busaidy allegedly conspired with other suspects who were not present in court and used his position as a company director to access the firm's bank accounts held at NCBA Bank, KCB Bank and Co-operative Bank. The prosecution claims he unlawfully withdrew company funds and used the money to acquire motor vehicles and other assets.

The accused faces several charges, including conspiracy to defraud, stealing, making a document without authority, and acquisition of proceeds of crime.

Investigators further told the court that Busaidy allegedly forged the signature of his co-director, Governor Issa Abdalla Issa, on multiple company cheques. The forged documents were allegedly presented as genuine authorisations to facilitate the withdrawal of millions of shillings from the company's accounts.

The court released Busaidy on a bond of KSh 10 million with one surety of a similar amount or, alternatively, a cash bail of KSh 3 million.

As part of the bail conditions, the court ordered him to surrender his passport, seek court approval before travelling outside the country, and refrain from contacting or interfering with witnesses involved in the case.

In a significant development, the court also issued summons to the Chief Executive Officers of KCB Bank, NCBA Bank and Co-operative Bank of Kenya, who are among the accused persons but were absent during the proceedings.

The case is scheduled for mention on August 11, 2026, when the other accused persons are expected to appear before the court and pre-trial directions will be issued.

The prosecution maintains that the alleged fraud was uncovered after extensive financial investigations traced the movement of company funds and the acquisition of assets suspected to have been purchased using the proceeds of the alleged crime. The case is expected to attract significant public interest given the amount involved and the senior corporate and financial institutions linked to the proceedings.