Francis Zuriel Moturi, a former Investments Manager at the National Social Security Fund (NSSF), will serve 14 years in prison or pay a fine of Ksh. 2 billion after the High Court upheld an earlier ruling of the trial court.

In a case prosecuted by Senior Prosecution Counsels Kanana Kimiri and Annette Wangia, Moturi was convicted and sentenced on two charges: Conspiracy to defraud, contrary to Section 317 of the Penal Code, and Deceiving Principal, contrary to Section 41(2) as read with Section 48 of the Anti-Corruption and Economic Crimes Act.

While dismissing the appeal, Justice Nixon Sifuna ruled that there was enough evidence to sustain the convictions and that the appellants were properly convicted.

The Magistrate’s Court had convicted Moturi and three others – David Murungu, Executive Director of DSL; Isaac Nyakundi Nyamongo, Finance Manager DSL; and Wilfred Munyoro Weru, Investments Manager DSL.

They were each sentenced to pay a fine of Ksh. 1 million shillings and in default serve two years imprisonment for the offence of Conspiracy to Defraud contrary to section 317 of the Penal Code.

Moturi was also sentenced to pay a fine of Ksh. 1 million or serve 3 years in default, and a mandatory fine of Ksh. 2.4 billion or serve nine years for the offence of Deceiving Principal contrary to Section 41(2) as read with Section 48 of the ACECA, 2003.

Moturi had raised several internal memos to the Managing Trustee of NSSF containing misleading statements, asserting that the fund’s stockbrokers, Discount Securities Limited, had purchased various quantities of shares in Kenya Commercial Bank, Standard Chartered Bank, Bamburi Portland Cement Company Limited, KenGen, and Nation Media Group at the National Stock Exchange for the National Social Security Fund, while no shares had been purchased.

This action committed the Fund to make payments worth Kshs. 1.4 million. Mr. Murungu, Nyakundi, Munyoro and Discount Securities Limited (DSL) were separately sentenced to pay a fine of Ksh. 1 million or serve 3 years imprisonment in default, and a mandatory fine of Ksh. 800 million or serve 9 years imprisonment.

The trial court further ordered that the sentences shall, in default of the fine, run consecutively and that none of the accused persons may be appointed to public office for the next 10 years, subject to Section 64(1) of the ACECA.

The offences were committed on diverse dates between 24th August 2004 and 19th July 2007 within Nairobi City.

The High Court found that the prosecution discharged its burden and proved the case against the appellants beyond any reasonable doubt. Justice Sifuna also ruled that the sentences imposed were neither unreasonable, excessive, harsh, nor illegal.