7 Company Directors Use Secret Bank Account to Siphon Ksh309M, Govt Orders Fresh Employee Verification

Hello Moneymakers, Kubasu here. In this newsletter, we're covering how directors used a secret account to defraud Invesco Insurance, EACC's fresh push for certificate verification in both public and private sectors, and a criminal gang targeting M-Pesa shop owners.

Directors at Invesco Assurance Charged in Ksh309M Fraud Case

On Wednesday, the Directorate of Criminal Investigations (DCI) announced that seven directors and former directors of Invesco Assurance Company had been charged in a Ksh309 million fraud case.

The Crime:Investigations began in September last year after the company was placed under statutory management. The Insurance Regulatory Authority (IRA), through a letter to the investigators from the Policyholders Compensation Fund (PCF), revealed a fraudulent scheme.

"During the takeover of Invesco Assurance Company Limited's assets (under statutory management), a secret bank account was discovered. This account was registered under the name 'Compliant Insurance Agency' and was domiciled at M Oriental Bank, Sameer Business Park Branch. It was opened on 1st May, 2024, with signatories from the top management of Invesco Assurance Company Limited. All collections of insurance premiums from 27 branches across the country were being remitted into this account," read the statement.

"Investigations commenced, and statements were recorded from relevant witnesses while all necessary documents were collected. The evidence pieced together revealed that the then top management of Invesco Assurance Company Limited — including directors, the Chief Finance Officer, and an accountant — siphoned a total of Ksh309 million through their respective M-Pesa accounts between 1st May, 2024, and 15th August, 2024."

On Tuesday, 20th May 2025, all seven suspects were arrested and placed in custody at Capitol Hill Police Station. They were charged at the Milimani Law Courts yesterday.

Catch Up Quick: This comes shortly after news broke that Equity Bank had fired hundreds of employees following investigations into a sophisticated mobile money scam that led to the loss of Ksh1.5 billion.

The employees involved reportedly used stolen IT credentials belonging to a manager in the Group Processing Center.

Crackdown on M-Pesa Fraudsters

Similarly, the DCI has cracked the whip on a gang that had devised new tricks to drain the float from mobile money agent shops, arresting five suspects in the process.

According to the agency, the five individuals—arrested in Kisumu—were part of a criminal gang operating across multiple counties.

DCI sleuths intercepted the vehicle they were traveling in and recovered several SIM cards registered under different names, along with multiple mobile phones.

"They have been escorted to Ruai Police Station, where one of the reports was filed. Other police stations with similar incidents have been contacted to further probe the suspects," the DCI stated.

Govt Orders Crackdown on Fake Certificates Held by Public & Private Employees

The government, in partnership with the Ethics and Anti-Corruption Commission (EACC), has launched a nationwide verification of academic and professional certificates in both public and private sectors. This comes amid efforts to recover over Ksh460 million earned by individuals using fake credentials.

EACC revealed that public offices lead in employing individuals with forged certificates, accounting for 70% of reported cases, followed by university lecturers. So far, 549 cases of forgery are under investigation, a report by Kenyans.co.ke indicated.

EACC Chair Dr. David Oginde warned that the issue likely extends to the private sector, while Head of Public Service Felix Koskei urged employers to take responsibility for verifying credentials before hiring.

The Judiciary was also criticised for its lax approach, which has allowed fraudsters to retain their jobs. The government has vowed to restore integrity by tightening scrutiny and holding institutions accountable.

Starlink Speeds in Kenya Plummet Amid Surge in Demand — Report

Kenyans using Elon Musk’s Starlink internet service are now facing the second-slowest speeds in Africa, a sharp contrast to its initial performance. The slowdown is attributed to a spike in demand that has overwhelmed the satellite provider’s infrastructure.

According to a report by Business Daily, Starlink’s average download speed in Kenya dropped to just 47 megabits per second (Mbps) in the quarter ending March 2025. This is a significant decline from speeds of over 200 Mbps recorded when the service first launched in the country in July 2023.

The data, sourced from Ookla, a leading internet speed testing platform, highlights the growing pressure on Starlink’s capacity as user numbers increase.

Government Suspends New Sacco Registrations Amid Fraud Crackdown

The Ministry of Cooperatives has imposed a three-month moratorium on the registration of new Savings and Credit Cooperative Societies (Saccos) as part of efforts to clean up the sector, the Standard reports.

This decision follows the exposure of a multi-billion-shilling fraud at the Kenya Union of Savings and Credit Cooperatives (Kuscco), where many depositors lost their funds.

Cooperatives Cabinet Secretary Wycliffe Oparanya stated that a five-member expert committee has been appointed to review the Sacco Societies Act, 2008, and recommend reforms aimed at tightening oversight.

He noted a concerning trend of individuals exploiting lax registration rules to form fraudulent saccos, particularly during election periods. Oparanya admitted the ministry has been "too lenient," allowing too many questionable outfits to emerge.

Gov’t to Write Off Ksh6 Billion in Hustler Fund Loans

The government plans to write off bad loans worth Ksh6 billion borrowed by 10 million Kenyans under the Hustler Fund, citing widespread default since 2022. MSMEs PS Susan Mang’eni told MPs that despite disbursing Ksh65.7 billion, only Ksh53.2 billion has been repaid, with about 9 million borrowers remaining active.

According to Citizen Digital, Mang’eni defended the fund’s performance and urged Parliament to approve an additional Ksh5 billion to support reliable borrowers and new applicants. However, MPs criticised the growing defaults, warning the fund could worsen public debt. The ministry is considering legal changes to enable forced loan recovery.