The High Court has temporarily halted the prosecution of Co-operative Bank of Kenya CEO Dr. Gideon Muriuki in connection with an alleged Sh363.3 million fraud at First Assurance Investment Company.
Justice Gregory Mutai on August 7 issued interim conservatory orders restraining the Director of Public Prosecutions (DPP) and the Directorate of Criminal Investigations (DCI) from arresting, charging, presenting for plea, or prosecuting both Co-op Bank and Muriuki.
The orders also suspend proceedings in Milimani Chief Magistrate’s Court Criminal Case No. E451 of 2026, Republic v Salim Mohammed Busaidy & six others and any other criminal proceedings arising from the investigations against the bank and its CEO.
The court issued the orders after Co-op Bank and Muriuki filed a petition and application dated August 6. Respondents have been given 14 days to respond, with the matter set for mention on October 12, 2026.
The case stems from investigations into the alleged theft of Sh363,320,459 from First Assurance Investment Company.
The DPP had announced intentions to charge the CEOs of three top banks NCBA’s John Gachora, KCB’s Paul Russo, and Co-op Bank’s Gideon Muriuki for alleged failure to report suspicious transactions.
The three were expected to appear in court on August 11, 2026 to take plea over charges of failing to comply with reporting obligations under Section 5 as read with Section 44(2) of the Proceeds of Crime and Anti-Money Laundering Act.
Investigators allege that former First Assurance director Salim Mohamed Busaidy forged signatures to unlawfully withdraw company funds. The DPP has approved 120 charges against Busaidy, including conspiracy to defraud, stealing, and acquisition of proceeds of crime.
In court filings Co-op Bank and Muriuki are challenging the planned prosecution, arguing that the proceedings should be stopped pending determination of their petition.
The bank remains one of Kenya’s tier-1 lenders with a unique ownership structure where Saccos collectively control 64.56% of shares. Muriuki himself holds a 2.3% stake worth about Sh4.35 billion.
This is not the first time Muriuki has faced legal scrutiny. In separate matters, a company associated with him,Gidjoy Investment Limited, has been involved in land disputes in Donholm. The bank has also previously been mentioned in DCI recommendations regarding the Sh8 billion NYS fraud probe currently the High Court orders bar any arrest or prosecution of Muriuki and Co-op Bank until the petition is heard.
