NCBA manager detained in $364,000 fraud case at Kisii branch

Oluwatosin Racheal Alabi -

Key Points

  • Philip Kiprono Rotich, an NCBA manager, is accused of diverting Ksh47 million ($364,000) from clients' accounts over a year-long period.
  • The DPP has requested a 10-day remand to facilitate thorough investigations, including document analysis and asset tracing.
  • This incident highlights the ongoing challenges of internal fraud within Kenya's banking industry, emphasizing the need for enhanced security measures.

hilip Kiprono Rotich, an assistant operations manager at NCBA Group's Kisii branch, has been arrested over allegations of embezzling Ksh47 million ($364,000) in a scheme that exploited internal banking processes. The alleged fraud, which occurred between November 2023 and October 2024, has raised concerns about the security of Kenya’s banking systems.

Rotich, a veteran NCBA employee with over a decade of experience, is accused of diverting funds from clients’ accounts to those belonging to his associates by manipulating internal transfer systems. Victims of the alleged scheme include high-profile individuals and institutions, such as Neel Gudkas, who lost Ksh14.7 million ($113,900); a Catholic diocese, defrauded of Ksh9 million ($69,700); and a bishop who also suffered a loss of Ksh9 million ($69,700).

The alleged activities came to light on October 14, 2024, when NCBA's head of security, Noah Cheptumo, flagged suspicious transactions and alerted law enforcement authorities.

Prosecution pushes for further detention

Rotich faces multiple charges, including theft, possession of proceeds of crime, conspiracy to commit a felony, forgery, and uttering false documents under Kenya’s Penal Code and the Proceeds of Crime and Anti-Money Laundering Act.

Prosecutors have requested a 10-day remand to allow investigators to analyze transaction documents, record witness statements, and trace assets allegedly acquired through the fraudulent scheme. Currently, Rotich is held at Kileleshwa Police Station pending a court ruling on the remand application.

NCBA’s response and industry implications

This incident has dealt a blow to NCBA Group, a leading financial institution in Kenya known for its strong presence in the regional banking sector. The bank is now under scrutiny for its internal controls, with calls for improved fraud detection and oversight to prevent insider threats.

The case highlights a broader challenge in Kenya’s banking industry, where internal fraud remains a persistent issue. Financial institutions are increasingly adopting artificial intelligence tools to monitor employee activities and detect irregularities in an effort to bolster security and rebuild public trust.

This arrest comes as NCBA continues to expand its operations, including a recent branch opening in Kitui to improve financial access and support local businesses. The Kisii fraud case, however, underscores the need for enhanced measures to protect clients and maintain the integrity of the banking system.