NCBA Group Challenges DPP Plan to Prosecute CEO Gachora

In Short

• NCBA Bank is challenging a move by Kenya’s Director of Public Prosecutions (DPP) to charge its CEO, John Gachora.
• The case relates to alleged failure to report suspicious transactions linked to a Sh363.3 million fraud at First Assurance Investment Ltd.
• The High Court has suspended the prosecution, with the matter set for further directions on August 27.

What Happened

NCBA Group told the High Court that the DPP’s plan to prosecute CEO John Gachora is based on a wrong reading of Kenya’s anti-money laundering law.

The DPP alleges Gachora failed to report suspicious transactions connected to the Sh363.3 million fraud linked to First Assurance Investment Ltd. Reporting suspicious transactions is a key part of anti-money laundering compliance, meaning banks must flag unusual payments that might involve crime.

NCBA argues the law places the reporting duty on the bank as an institution, acting through a designated Money Laundering Reporting Officer, not on the CEO personally. It says the prosecution is trying to create criminal liability simply because Gachora holds the CEO role, without pointing to a specific act, omission, knowledge, or intent.

In court filings, NCBA says it met its obligations through its compliance framework, including processes under POCAMLA and its 2013 regulations. The bank also outlined how it handled the First Assurance Investment account, including Know Your Customer checks, which are identity and risk checks banks run before and during a customer relationship.

The case is part of a wider push. The DPP has also targeted the CEOs of KCB Group and Co-operative Bank of Kenya, who have also obtained court orders stopping their prosecutions.

Why It Matters

For Kenya’s banking sector and fintech partners, the outcome could shape how personal accountability is applied in compliance failures. If courts allow prosecutions that rely mainly on job title, executives may push for tighter internal sign-offs, more documented oversight, and stricter escalation paths.

It also matters for how banks structure anti-money laundering operations. Clear boundaries between board oversight, executive management, and the reporting officer function affect response times, audit trails, and how quickly suspicious transaction reports get filed.

The High Court pause means the immediate legal risk is on hold, but the August 27 directions will be an important signal for compliance teams across the market.