A constitutional bid seeking to suspend Co-operative Bank Chief Executive Officer Gideon Muriuki from running one of Kenya’s largest banks has been withdrawn, after the petitioner challenged his continued tenure amid the approval of criminal charges against him.
The application, filed at the High Court by Francis Awino in the public interest, sought orders temporarily removing Muriuki from the position of CEO and Managing Director and handing the bank’s day-to-day management to another senior executive pending the determination of the constitutional petition.
The application was withdrawn on August 11, 2026, without reasons being given in the court papers for the withdrawal.
Awino had also asked the court to restrain the bank’s board from renewing, extending, varying or affirming Muriuki’s appointment as CEO.
He further sought orders directing the Central Bank of Kenya, in its supervisory capacity, to ensure that Co-operative Bank’s governance remained compliant with the Constitution, the Banking Act and applicable prudential guidelines.
The petitioner based the challenge on Articles 10, 73, 75 and 232 of the Constitution, raising questions over leadership, integrity, accountability and governance at the financial institution.
Co-operative Bank CEO Gideon Muriuki
The application followed the approval of criminal charges against Muriuki by the Office of the Director of Public Prosecutions in connection with investigations into an alleged Sh363.4 million fraud involving First Assurance Investment Company Limited.
According to the ODPP, charges were approved against the CEOs of Co-operative Bank, KCB Bank and NCBA Bank over alleged failure to report suspicions regarding proceeds of crime, contrary to the Proceeds of Crime and Anti-Money Laundering Act.
The three bank CEOs were expected to appear before the Chief Magistrate’s Court on August 11, 2026, for plea-taking.
Muriuki, however, did not appear before the Chief Magistrate’s Court after the High Court issued interim conservatory orders restraining his arrest, presentation for plea-taking, charging and prosecution in Milimani Chief Magistrate’s Court Criminal Case No. E451 of 2026, Republic v Salim Mohammed Busaidy & 6 Others.
The High Court also stayed all further proceedings in the criminal case pending the inter partes hearing of the application.
The orders were issued by Justice Gregory Mutai on August 7, 2026, after the court certified urgent a Notice of Motion dated August 6, 2026.
The matter is scheduled for mention on October 12, 2026, for compliance and further directions.
The ODPP separately approved 120 charges against Salim Mohamed Busaidy over the alleged theft of Sh363,420,459 from First Assurance Investment Company Limited.
The charges comprised three counts of conspiracy to defraud, two counts of stealing, 114 counts of making a document without authority and one count of acquisition of proceeds of crime.
According to the ODPP, investigations established allegations that Busaidy forged the signature of Lamu Governor Issa Abdalla Issa on multiple company cheques to facilitate the withdrawal of funds from the company.
In Muriuki’s case, the court papers filed by Awino alleged that he had been named as an accused person in the criminal proceedings and specifically referred to an allegation of conspiracy to defraud First Assurance Investment Company Limited of Sh55,411,050.
The petitioner argued that Muriuki’s continued occupation of the bank’s top executive position raised constitutional questions given the fiduciary responsibilities attached to the office and the importance of public confidence in the banking sector.
Awino further alleged that the bank’s board had failed to demonstrate that it had undertaken a governance or suitability review concerning Muriuki’s continued tenure following the approval of the criminal charges.
The application sought the suspension of Muriuki pending determination of the constitutional petition, arguing that the temporary removal would preserve the integrity of the office while the court considered the issues raised.
The High Court did not determine the merits of the application following its withdrawal.
The allegations against Muriuki remain unproven, while the criminal proceedings are separate from the withdrawn constitutional application.
