A businessman was arraigned in court today on fraud charges related to an alleged scheme that defrauded Diamond Trust Bank of over Sh 30.8 million. Samuel Mutai appeared before Milimani Chief Magistrate Lukas Onyina and denied the charges against him.
Mutai, alongside Alfred Kipkorir Mutai, John Fernandes Muiga, and Kipsigis Stores Limited, are accused of fraudulently obtaining loans and unlawfully disposing of mortgaged assets.
The prosecution alleges that between July 31, 2013, and August 24, 2013, the accused conspired to acquire a loan of Sh 30,888,000 from DTB’s Kericho branch using several collaterals, which were later disposed of without the bank’s consent.
Mutai is also facing multiple counts of fraudulent disposition of mortgaged property, contrary to Section 291(1) of the Penal Code. Among the assets unlawfully sold are several trucks, including an Ashok Avia truck (KBV 200W), an Isuzu FVR truck (KBX 165K), and another Isuzu FVR truck (KBX 162K), which were disposed of between 2018 and 2020.
While Mutai appeared for plea-taking, his co-accused failed to show up, prompting the court to issue a warrant of arrest against them.
The court released him on a bond of Sh 1 million or an alternative cash bail of Sh 500,000.
The matter is set for mention on April 7, ahead of the pre-trial.
