The criminal case surrounding First Assurance Company director Salim Mohammed Busaidy and an alleged KSh363.4 million loss has taken a new turn after the High Court temporarily halted proceedings arising from the investigations.
Justice Gregory Mutai issued interim conservatory orders on August 7, 2026, after certifying the application as urgent.
The matter, Milimani Criminal Case No. E451 of 2026, Republic v Salim Mohammed Busaidy & 6 Others, centres on investigations into transactions surrounding the alleged loss of KSh363.4 million.
Busaidy is among those linked to the case, with questions having been raised over the transactions involving the funds. Fellow directors, including Lamu Governor Issa Timamy, have also raised allegations concerning the transactions.
The investigations subsequently widened to examine whether suspicious transactions connected to suspected proceeds of crime were reported to the relevant authorities as required by law.
This brought several senior bank executives into the investigations, with KCB Chief Executive Officer, NCBA Chief Executive Officer and Co-operative Bank Managing Director facing possible prosecution over alleged failure to report suspicious transactions.
The executives, however, are not accused of stealing the KSh363.4 million.
Justice Mutai has barred the Director of Public Prosecutions and the Director of Criminal Investigations from arresting, charging or prosecuting the applicants over the investigations pending further court proceedings
The judge also stayed further proceedings in the matter.
The respondents and interested parties have 14 days after service to respond, while the applicants will have another 14 days to file their rejoinders and submissions.
