Family Bank Pleads Guilty To NYS Scam Charges

by Mahakamani News

Family Bank Limited has been fined sh 64.5 million by a Nairobi court after pleading guilty to six counts of failing to report suspicious transaction involving Sh 1.6 billion made by NYS prime suspect Josephine Kabura.

Milimani Chief magistrate Francis Andayi fined the bank after it’s pleaded to the charges through it representative John Muchiri Kingo’ri who was appointed by the board of directors.

“I have considered by both DPP and defence team and plea bargaining and i pass sentence as follows, the bank to pay 40 million and shilling 24.5 million to be paid NYS thorough the ministry of public works and failure to which their property to be sold,” ruled Andayi

He however discharged the family bank from the case as per the plea bargaining agreement.

“The plea bargaining being adopted by all parties and accused person being explained his rights , the court accept the plea agreement as it is satisfied Muchiri is competent and to represent the family bank in the case and plead guilty to the charges,”said Andayi.

The DPP through his assistant Dorcas Oduor urged the court to adopt the plea bargaining while convicting family bank.

Odour said the DPP has taken into account that the family bank agreed or consented to cooperate with them and investigators in the matter.

She urged the court not to send Muchiri to prison since he is a legal person in the bank.

“We acted in the public interest , upheld the rule of the law and the rights of the victims while entering into plea agreement with the bank. We feel that justice has not only been seen to be done but as been done,” Odour said.

She informed the court that family bank has been cooperating with the regulator Central Bank Of Kenya and has put mechanisms to deter future recurrences of smile transactions.

Family Bank through it lawyers Waweru Gatonye and Cecil Miller urged the court that their client have all along cooperated with the prosecution and investigators.

They further urged to pass the sentence as stated in the plea bargaining agreement .

“The regulator had vindicated it position there was failure to report suspicious transaction by the family bank. Most important is that the victim will be compensated accordingly and that it is there believe the plea bargaining agreement is an expression that justice has been done and same should be adopted in entirety. We will undertake to ensure to pay the fine forthwith,” said Gatonye.

In the plea agreement filed in court on Monday 17 last year, bank through  John King’ori who was appointed by the board directors to plead on behalf of the was expected to plead guilty to six counts of failure to report transactions equivalent to or exceeding 10,000 US dollars.

The transactions are alleged to have been made by Josephine Kabura, a prime suspect in the NYS scam.

According to the agreement, if the bank rejects his plea of guilty, the plea agreement shall be rendered null and void and no party shall be bound by it.

The Bank has further agreed to pay Sh64,500,000 as fine for the six counts, their senior managers face. If agreed the amount will be dispersed to NYS and part will remain as court fine.

The Bank has proposed to send Sh24,500,000 which will be deposited into account of NYS and the balance of Sh40 million will be deposited as court fine.

“The accused persons is entering into this plea agreement and is pleading guilty freely and voluntarily without promise or behalf of any kind,” reads the plea agreement.

“If the accused person-(the bank) fails to comply with the terms and conditions set forth in the plea agreement, the state may fully prosecute the bank on all criminal charges that can be brought against it,” reads part of the agreement.

The agreement is dated December 11, 2018 and signed by secretary public prosecutions Dorcas Oduor.


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