Nyachae’s son Michael arrested Over Sh1.2 million fraud claims

A son of former powerful Minister Simeon Nyachae who is also the Development Bank of Kenya (DBK) Chairman Michael Moragia Nyachae was Friday charged with theft of Sh1.2 million.

The businessman was accused of allegedly stealing the money from his family’s business, Sansora Group Limited.

The 62-year-old man was alleged to have stolen the money over a span of close to two years in Kisii.

“Michael Moragia Nyachae diverse dates between 28th March, 2019 and 28th day of September, 2021 at Kisii County within the Republic of Kenya, stole Ksh.1,226,036/=( one million two hundred and twenty-six thousand and thirty six), the property of Sansora Group Limited,” the charge sheet reads in part.

Moragia, brother of the former East African Court of Justice (EACJ) Judge Charles Nyachae, was arrested on Thursday at Chepilat, Bomet County and detained at the Kileleshwa police station in Nairobi. He had been trailed from Kisii town before his arrest.

This followed the decision by the Director of Public Prosecutions, Renson Ingonga, to press theft charges.

Ingonga, in his directive, said that he had found there was sufficient evidence to make a case against Moragia following a complaint by the company.

The criminal case stems from a probe by the Directorate of Criminal Investigations (DCI) that has taken three years.

The DCI had recommended, among others, that he should also face money laundering charges.

However, the DPP, in response, directed a further probe into it, saying some areas needed sealing.

“I have noted that there are gaps that need to be addressed as appertains to the charges that were to be instituted against the suspect under the Proceeds of Crime and Anti-Money Laundering Act No. 9 of 2009 and Forgery,” DPPs response to the DCI reads in part.

In court, the DPP did not oppose Moragia’s release on bail.

Milimani Court Principal Magistrate Caroline Nyaguthii released him on a Sh 200,000 bond or Sh 50,000 cash bail.

The case will be mentioned on September 29, 2026.

Some family members are embroiled in disputes over succession after the death of the senior Nyachae.

Michael Moragia Nyachae, son of former powerful Cabinet Minister Simeon Nyachae, has been arrested and detained at Kileleshwa Police Station in Nairobi over alleged fraud involving Sh1.2 million.

Nyachae is expected to be arraigned in court on Friday over claims that he forged his late father’s signature and siphoned money from Sansora Group Limited, a company owned by the Nyachae family.

According to the charge sheet, Nyachae allegedly stole Sh1,226,036 from the company between March 28, 2019, and September 28, 2021, in Kisii County.

“Michael Moragia Nyachae, diverse dates between 28th March, 2019 and 28th day of September, 2021 at Kisii County within the Republic of Kenya, stole Ksh.1,226,036/= (one million two hundred and twenty six thousands and thirty six), the property of Sansora Group Limited.”

Nyachae was arrested in Kisii and taken to Nairobi ahead of plea-taking after the Office of the Director of Public Prosecutions approved the charges.

The company’s board had complained that he allegedly opened a parallel paybill number using forged documents. Police also claimed that he declined to record a statement during investigations.

His lawyers had tried in vain to have him released pending arraignment.

The matter comes amid succession disputes involving some members of the Nyachae family, which have previously drawn police involvement.

For instance, in February 2026, shareholders of companies linked to the late Nyachae were cleared to proceed with a derivative suit over the alleged fraudulent sale of a prime property in Kisii town valued at more than Sh35 million.

In a ruling delivered by High Court Judge Freda Mugambi, the court allowed shareholders to file the case on behalf of Sansora Bakers & Confectioneries Limited and its parent firm Sansora Investments Ltd, paving the way for a full hearing into the disputed transaction.

At the centre of the dispute is a property in Kisii town allegedly sold for Sh8 million in May 2021, despite claims that it was worth over Sh35 million.

The shareholders argued that the sale was irregular, opaque, and deliberately undervalued.

“I have equally reviewed the plaint filed, and I am satisfied that the reliefs sought are directed towards the protection of the Company as a whole,” Justice Mugambi ruled, noting that the application met the threshold under Sections 238 and 239 of the Companies Act, 2015.

The suit named company directors Michael and Jamaludin Shamsudin Alibhai Rajwani, who are accused by a section of the Nyachae family of running the company as personal property to the detriment of other shareholders.