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“Insider Bid: Faulu Bank Officer’s Firm Linked to ‘Illegal’ Sh150M Auction of Widow’s Property”
The company offered to buy the said property at a price of Ksh 87 million, and Mwangi proceeded to transfer Ksh 25 million to the bidder's account in Faulu Bank before the court issued an order of staying the sale.
Faulu Bank credit officer Amos Mugweru Mwangi was the one who paid part of the money to purchase the property that the bank had illegally auctioned.
This was revealed during the defence hearing of the Faulu Bank officials in the case where they were charged with conspiring to defraud an 80-year-old widow by the illegal sale of her property worth KSh 150 million.
In his defence, Faulu Bank credit officer Peter Kefa Onsongo told the Milimani Chief Magistrate Lucas Onyina that “after the bid to sell the property LR 209/11395, at Huruma Estate in Nairobi within Nairobi County, Oksana Investment Supplies Limited, the company owned by Mwangi, won the bid.”
The company offered to buy the said property at a price of Ksh 87 million, and Mwangi proceeded to transfer Ksh 25 million to the bidder’s account in Faulu Bank before the court issued an order of staying the sale.
Oksana Investment Supplies Limited, a company owned by the first accused person, Amos Mugweru Mwangi.
He was charged alongside Faulu Microfinance Bank credit officers Amos Mugweru Mwangi, Tom Jaseme, Trader Paul Njuki, and a businesswoman, Esther Muthoni Maina.
They were charged that, on diverse dates between May 30, 2015, and March 28, 2018, at an unknown place in Nairobi within Nairobi county, jointly conspired to defraud Alice Wanjiru Wamwea by means of fraudulent auction of her property LR NO 209/11315, in Huruma, whichwas valued at Sh 150 million.
Wamwea lodged a complaint before the court to salvage her property, LR NO 209/11315, located in Huruma Estate in Nairobi, within Nairobi county, which the bank took in possession and sold it for what they termed as failure to pay the loan she borrowed from them.
In her testimony, the widow stated that she borrowed a Sh 52 million loan from Faulu Bank to develop the property by building rental houses. The money was disbursed in two separate payments at a rate of 12% per annum, given a period of 54 months.
Wamwea alleges that she continued to pay the loan as per the agreement, but the money was not accounted for.
“I was paying the loan as per the agreement, but when I requested the bank statements, they never produced the same. At the juncture, I sensed something was wrong,” read her statement.
The defense hearing continues on February 26, 2026.
