University graduate, Victor Kiptoo, at the Milimani Law Court in Nairobi where he was charged with defrauding Standard Chartered Bank (Kenya) Limited by hacking into its system.
An accounts and financial banking graduate accused by police of being part of a syndicate siphoning millions of shillings from banks across three counties has been arraigned for allegedly defrauding Standard Chartered Bank (Kenya) Limited of more than Sh5.9 million.
Victor Kiptoo, who appeared before Milimani Senior Principal Magistrate Dolphina Alego, was detained at Capitol Hill Police Station until May 5, 2025, to allow his lawyer, Brian Anyazwa, to file an affidavit opposing a police request to hold him for 14 more days.
Prosecuting counsel Hillary Isiaho told the court that officers from the cybercrime police unit are investigating a Sh30 million fraud involving Standard Chartered and other lenders, allegedly perpetrated by Kiptoo and others still at large.
“Your honour, police have expanded their investigations to Bomet, Laikipia and Kisii counties where a major syndicate of bank scammers is operating, draining customers’ accounts,” stated Isiaho.
He requested 14 days to allow the suspect to assist in identifying others involved in hacking bank and mobile banking systems to gain unauthorised access to accounts.
Isiaho said Mr Kiptoo, a 2024 graduate of a Nairobi-based university, was arrested by banking fraud detectives in conjunction with the Directorate of Criminal Investigation’s serious crimes unit.
The investigating officer, Inspector Silas Owino Owenga, in a sworn affidavit supporting the detention request, said the suspect was arrested in Mogogosiek, Bomet County, after a prolonged manhunt.
Mr Owenga said Mr Kiptoo was linked to a Sh5.9 million transaction involving another suspect, Mr Ronald Kiprono, who has already been charged in a pending bank fraud case.
Some of the funds were traced to Mr Kiptoo.
The court heard that Mr Kiptoo is considered a flight risk.
He is allegedly part of a wider bank fraud syndicate generally referred to as “Mulot,” said to be operating from the Rift Valley and defrauding banks across the country.
“The suspect was traced and arrested at his home in Mogogosiek on April 30, 2025, and later transferred to Nairobi,” said Mr Owenga.
The court was told that the bank detected the fraud and reported it.
“The Sh5.9 million fraud was reported by Standard Chartered Bank in a letter dated February 26, 2025, after several customers complained their money had been siphoned through account number 0100452113700,” Mr Owenga stated.
Police and banking fraud detectives are currently investigating the broader Sh30 million loss from the bank, one of the country's oldest financial institutions.
“In view of the seriousness of this claim and the alleged colossal loss, I direct the suspect’s lawyer to file an affidavit responding to the issues raised by the police,” Magistrate Alego ruled.
The suspect will remain in custody until May 5, 2025.
