Seven former employees of Invesco Assurance and Compliant Insurance Agency have been arraigned in connection with a Sh309 million fraud case, in what prosecutors describe as a coordinated scheme to siphon customer premiums.
The accused, Albert Muhavani, Daniel Nalyanya, Michael Kibara, and four senior staff members from Compliant Insurance Agency, appeared before the Milimani Law Courts, where they were charged with conspiracy to defraud, obtaining money by false pretenses, and unlawful vesting of assets.
According to court documents, the scheme took place between April and August 2024 and involved the diversion of insurance premiums collected at 27 Invesco branches into a bank account held by Compliant Insurance Agency at Oriental Bank.
“All the accused pleaded not guilty,” said Senior Principal Magistrate Ben Mark Ekhubi. “The matter has been scheduled for mention on June 9, 2025.”
Investigators from the Insurance Fraud Investigation Unit say the suspects executed a calculated operation that systematically diverted policyholder funds intended for claims processing.
“This is not an ordinary fraud; it was premeditated and involved coordination from top to bottom,” an official close to the investigation revealed.
Insurance Regulatory Authority (IRA) has faced sharp criticism for its delayed detection of the multi-million shilling loss. With Kenya’s insurance penetration still below 3 percent, such incidents further undermine public trust in the sector.
Speaking on the development, a policyholder who requested anonymity said, “We pay these premiums expecting to be protected during hard times. If even the people handling our money can’t be trusted, then where do we turn?”
Regulators are now under pressure to implement tighter oversight, including mandatory real-time premium tracking and tougher vetting for financial officers. Industry players say technology must play a central role in preventing similar scams.
“These are the moments that test the credibility of our financial systems,” said Boniface Kaberia, a Nairobi-based insurance analyst. “This case shows why asset segregation, automated reconciliation, and whistleblower mechanisms are no longer optional; they’re critical.”
The prosecution has listed more than 20 witnesses, including branch managers, forensic auditors, and whistleblowers from within the firms.
The court is expected to rule on pre-trial motions and bail terms at the next hearing.
