Seven directors and former directors linked to Invesco Assurance Company Limited and Compliant Insurance Agency appeared before Chief Magistrate’s court in Milimani on Wednesday, facing charges related to a Ksh 309 million insurance fraud scheme.

The accused persons; Albert Karakacha Muhavani (former director of Invesco Assurance Company Limited), Daniel Wekesa Nyalyanya (former Chief Finance Officer), Michael Ngángá Kibara (former accountant), and four directors of Compliant Insurance Agency: Ruth Wangari Mwasalu, Antony Githinji Ngerere, Hildah Wambui Karanja, and Lameck Gisore Ongere.

According to investigations by the Directorate of Criminal Investigations’ Insurance Fraud Investigation Unit, the fraud came to light in September 2024 when officials at the Insurance Regulatory Authority (IRA) discovered the scheme while taking over Invesco’s assets under statutory management.

The Policyholders Compensation Fund revealed that Invesco had been using a secret bank account registered under the Compliant Insurance Agency’s name at M Oriental Bank’s Sameer Business Park Branch. The account, opened on May 1, 2024, had Invesco’s top management as signatories.

All insurance premium collections from the company’s 27 branches nationwide were channeled into this account instead of the company’s official accounts.

Investigations revealed that between May 1 and August 15, 2024, the accused persons systematically transferred Ksh 309 million from the secret account to their personal M-Pesa accounts.

The suspects were arrested on Tuesday, May 20, 2025, and held at Capitol Hill Police Station before their court appearance.

Following advice from the Office of the Director of Public Prosecutions, all seven face charges of Insurance Fraud contrary to Section 204B(2) as read with Section 204B(5) of the Insurance Act.

The four Compliant Insurance Agency directors face an additional charge of Stealing by Directors contrary to Section 282 of the Penal Code.

The case highlights ongoing efforts by regulatory authorities to combat insurance fraud in Kenya’s financial sector, with investigations spanning nearly eight months before the arrests were made.