Seven current and former directors of Invesco Assurance Company Limited and Compliant Insurance Agency were on Wednesday arraigned at the Milimani Chief Magistrate’s Court to face charges relating to an alleged Sh309 million insurance fraud scheme.
The accused include former senior executives from Invesco Assurance and directors of Compliant Insurance Agency:
- Albert Karakacha Muhavani – Former Director, Invesco Assurance
- Daniel Wekesa Nyalyanya – Former Chief Finance Officer, Invesco Assurance
- Michael Ng’ang’a Kibara – Former Accountant, Invesco Assurance
- Ruth Wangari Mwasalu – Director, Compliant Insurance Agency
- Antony Githinji Ngerere – Director, Compliant Insurance Agency
- Hildah Wambui Karanja – Director, Compliant Insurance Agency
- Lameck Gisore Ongere – Director, Compliant Insurance Agency
The arrests follow months of investigations by the Directorate of Criminal Investigations (DCI)’s Insurance Fraud Investigation Unit, which launched a probe in September 2024 after a tip-off from the Insurance Regulatory Authority (IRA) and the Policyholders Compensation Fund (PCF).
According to a letter from PCF, the fraudulent scheme was uncovered while the agency was taking over assets from Invesco Assurance, which is under statutory management. Investigators discovered that the company was secretly channeling insurance premium collections from its 27 branches into a concealed account at M Oriental Bank’s Sameer Business Park Branch. The account, registered under Compliant Insurance Agency, was opened on May 1, 2024, with Invesco's top executives listed as signatories.
Between May and August 2024, the accused are alleged to have siphoned Sh309 million from the secret account using various M-Pesa accounts linked to them.
Following the investigation and after compiling statements and documentary evidence, the Office of the Director of Public Prosecutions (ODPP) approved charges against the seven. They are charged with Insurance Fraud under Section 204B(2) of the Insurance Act. Additionally, the four directors of Compliant Insurance Agency—Mwasalu, Ngerere, Karanja, and Ongere—face a separate charge of Stealing by Directors, contrary to Section 282 of the Penal Code.
The suspects were arrested on Tuesday, May 20, and held at Capitol Hill Police Station prior to their court appearance.
The case is a major development in the ongoing crackdown on fraud in the insurance sector, which authorities say has cost the economy billions in lost revenue. The matter is set to proceed as the court determines bail terms and sets hearing dates.
Further updates will follow as the case unfolds.
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