- Justice Nixon Sifuna, reviewing the evidence, determined that Moturi’s actions led to the significant financial loss experienced by the NSSF.
- However, Justice Sifuna upheld their convictions and sentences, emphasizing the need for accountability in the handling of public funds.
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The High Court has upheld a Sh2.6 billion fine and a 14-year jail term for former NSSF investment manager Francis Moturi in connection with the Sh1.2 billion loss at the pension fund.
Justice Nixon Sifuna, reviewing the evidence, determined that Moturi’s actions led to the significant financial loss experienced by the NSSF.
Moturi was previously the head of the department responsible for purchasing shares.
According to Justice Sifuna, the prosecution effectively demonstrated that Moturi's activities resulted in the NSSF disbursing Sh1.2 billion through questionable trading practices involving Discount Securities Limited (DSL), a company that has since collapsed.
In 2022, then Chief Magistrate Lawrence Mugambi found Moturi and three DSL directors guilty of causing the Sh1.2 billion loss.
Mugambi, now a Judge, imposed a 14-year prison sentence on Moturi or, alternatively, a Sh2.6 billion fine. Additionally, the DSL officials—David Githaiga, Wilfred Weru, and Isaac Nyamongo—were each fined Sh802 million or face a 12-year prison term.
DSL, in liquidation, was ordered to pay Sh4.8 billion, contingent on the availability of funds from the sale of its assets.
Dissatisfied with the verdict, Moturi and the other parties appealed.
However, Justice Sifuna upheld their convictions and sentences, emphasizing the need for accountability in the handling of public funds.
He noted that Moturi issued 41 memos to the NSSF’s managing trustee containing inaccurate statements about share purchases allegedly made by DSL on behalf of the NSSF, which never occurred.
As the investment manager, Moturi was expected to act with diligence, prudence, and honesty.
"Being the fund's investment manager, he was expected to act diligently, prudently, honestly as well as further the interest of the fund, his employer," said the Judge
However, according to the court, he, along with DSL officials, was involved in a scheme that led to the misappropriation of a significant amount of money from the fund.
"This was a mammoth fraud perpetrated on Kenyan pensioners by a public official in concert with the directors of DSL who need to learn even painfully to respect public funds and restrain themselves from appropriating or misappropriating public funds, the judge said.
Justice Sifuna held that Moturi’s criminal liability stemmed from his involvement in the scheme and his role as the investment manager.
He was identified as a key promoter of the scheme and bore substantial responsibility for the financial losses incurred.
"He is the one who promoted the said scheme. He bears the highest responsibility," he said.
The Judge concluded that there was sufficient evidence to support the convictions, and the sentences imposed were neither excessive nor illegal.
He remarked on the gravity of the situation, emphasizing the importance of protecting public funds, especially those belonging to vulnerable groups like pensioners.
"What happened at NSSF was a premeditated, ingeniously conceived and cunningly executed fraud on public funds of pensioners," the judge said.
The appeal against the conviction and sentence was dismissed.
"I find there was enough evidence to sustain the conviction. They were all properly convicted. The appeal on conviction and sentence fails," he said.