A court in Nairobi on Wednesday heard testimony in the ongoing Sh1 billion fraud case involving David Kariuki Ngari, also known as Gakuyo, the former Kiambu gubernatorial aspirant and head of Gakuyo Real Estate.
The second prosecution witness, Moses Kariuki, a former CEO of Gakuyo Real Estate, told the court he was responsible for managing customer relations, digital marketing, and investor site visits.
He said when complaints exceeded his capacity, he referred them to Mr. Ngari.
Kariuki, who joined the company as a digital marketing executive before becoming CEO, said he resigned in 2018 amid growing pressure from clients demanding refunds and title deeds.
Most complaints, he noted, came from members of Ekeza Sacco and the Gakuyo Investment Club.
He explained that while he signed some documents on behalf of the director, strategic decisions were made jointly with Ngari.
He also testified that he lost a house in Thika to Mr. Ngari after defaulting on a Sh7 million loan from Ekeza Sacco.
Kariuki attributed some of the financial strain on the institutions to investor withdrawals following Mr. Ngari's entry into politics, citing negative campaigns during the 2017 elections. However, he clarified that he held no personal grudge and denied any conspiracy to defraud members.
He also stated that Gakuyo Real Estate, Ekeza Sacco, and Gakuyo Investment Club initially operated from the same office, but were later separated for transparency.
He said all financial operations were overseen by Mr. Ngari.
Another witness, Peter Ndirangu, a former transport manager at Gakuyo Real Estate, testified that he occasionally delivered sealed envelopes and bags from Ekeza Sacco’s CEO to Mr. Ngari.
Although the deliveries were not part of his official role, he said he complied as instructed by his superior.
Ndirangu, who was dismissed in 2018 for alleged underperformance, denied being bitter and said he responded to a summons by the Directorate of Criminal Investigations.
He told the court he had not received terminal dues.
The defence challenged Ndirangu’s credibility, suggesting his testimony was influenced by his dismissal, a claim he denied.
Ngari and Ekeza Sacco face over 10 charges, including conspiracy to commit a felony and obtaining money by false pretence.
The charges relate to activities between 2015 and 2018, involving sums such as Sh2.45 million from an investor and Sh553,050 from a welfare group, allegedly under false pretences about land sales and investment returns.
The prosecution requested a postponement, citing uncooperative witnesses.
The court granted the request and ordered that the witnesses be summoned. The defence objected to the delay, arguing it was unfair to the accused.
Senior Principal Magistrate Ekhubi adjourned the case to August 5, 6, and 7, 2025, and directed the prosecution to ensure witness attendance.
He also approved transport reimbursement for Ndirangu, who had traveled from Naivasha.
