Former NSSF Manager Francis Moturi Fined Sh2.4 Billion or Serve 12 Years in Jail over Fraud

Former National Social Security Fund (NSSF) investment manager Francis Moturi has been slapped with a Sh2.4 billion fine or serve 12 years in jail over fraud.

This comes after he was found guilty of knowingly misleading NSSF into making payments amounting to Sh1.2 billion through irregular trading in shares through Discount Securities Limited (DSL).

Moturi was convicted alongside officials of DSL Isack Nyakundi, Wilfred Munyoro, and David Githaiga. 

Chief Magistrate Lawrence Mugambi fined Nyakundi, Munyoro, and Githaiga Sh803 million each or serve a 12-year jail term. Discount Securities Limited was ordered to pay a fine of Sh4 billion failure to which its assets will be auctioned.

In total, the convicts defrauded NSSF Sh1.6 billion by buying non-existent shares between August 2002 and July 2007.

The court noted that even after the payments were made, Moturi did not bother to counter-check the claims and that the loss went on for four years and was discovered after he left the agency. 

It also found that Isaac Nyakundi was aware of what was going on, hence the irregularities were intentional. It was also established that Githaiga, Munyoro, and Nyakundi sent false information to NSSF and the fund acted on it, leading to loss of the funds.