According to individuals familiar with the matter, the former politician allegedly presented himself as acting on behalf of Sacco interests in Nyamira and Kisii before preparing legal documents intended to frustrate the bank’s restructuring process.
Sources close to the investigations claim the alleged scheme began with demand letters and draft court suits sent to the bank. This was later followed by messages inviting bank representatives to “talk.”
People familiar with the matter said the communication was interpreted as an attempt to pressure the bank into private negotiations outside the formal shareholder and legal processes.
Investigators are now examining whether the court actions were part of a broader plan to delay or influence the payout process tied to the bank’s restructuring.
The matter reportedly took a fresh turn after genuine leaders within the cooperative movement in Nyamira and Kisii discovered that their names and institutions were allegedly being linked to the cases without proper consultation or approval.
Following the concerns raised, sources claim the individuals behind the filings changed lawyers, altered the structure of the suits and repackaged the dispute as a shareholder-led case.
The unfolding dispute has attracted attention within banking and cooperative circles due to the size of the shareholder payout and the potential impact of the restructuring process on investors.
Co-operative Bank’s restructuring plan, which includes the creation of a holding company, is expected to affect thousands of shareholders linked to Saccos and individual investors across the country.
Sources familiar with the matter said investigators are now tracing the origin of the filings, communications and individuals believed to have coordinated the legal actions.