A sophisticated alleged insider fraud scheme at Diamond Trust Bank (DTB) has exposed serious questions about internal banking controls after senior officials at the lender’s Parklands branch were charged with allegedly siphoning more than Sh149.3 million from a customer’s account over five years.
The case, now before the Milimani Law Courts, has sent shockwaves through Kenya’s banking sector, not only because of the amount involved, but also due to the seniority of the accused and the disturbing allegations of forged documents, fake email instructions and manipulated withdrawal records allegedly used to drain the funds unnoticed for years.
Former DTB Managers Charged
Three suspects appeared before court on Tuesday to answer to 68 criminal charges linked to the alleged fraud.
They include:
- Salimah Ameen Pirbhai, 55, a former branch manager at DTB Parklands,
- Aabid Alkarim Kassam, 43, a former assistant branch manager, and
- Tazim Sidi Vassanji, 57.
The trio denied charges ranging from conspiracy to defraud and stealing to money laundering and forgery.
According to prosecutors, the alleged victim was Rozina Nurdin Patelia, a long-time customer who maintained a Great Britain Pounds account at the Parklands branch and allegedly had no knowledge that her money was disappearing.
A Fraud Scheme Allegedly Hidden Behind Trust
Court documents indicate that the alleged fraud began in October 2016 and continued until October 2021, with investigators claiming the suspects systematically used forged withdrawal slips and fake customer instructions to access the funds.
Prosecutors allege the fraud was not an isolated act but a carefully organised scheme conducted over several years.
Kassam is accused of stealing more than Sh58.2 million between 2016 and 2018 and an additional Sh10.9 million between 2019 and 2021 while serving as assistant branch manager.
The prosecution further alleges he forged withdrawal slips amounting to thousands of British pounds and generated fake instructions authorising the liquidation of multiple fixed deposit accounts.
One of the most serious accusations is that he allegedly prepared fraudulent email instructions pretending to originate from the customer, authorising the release of funds.
Investigators say forged instruction letters dated June 5 and June 9, 2019, were allegedly used to facilitate unauthorised cash withdrawals from the customer’s account.
Fresh Allegations in 2025
The case took an even more dramatic turn after prosecutors accused former branch manager Pirbhai of allegedly stealing Sh39.6 million from the bank in June 2025 and later preparing fake bank statements to conceal the fraud.
If proven, the allegations suggest the suspected manipulation of records and unauthorised activity may have continued years after the original alleged fraud scheme began.
Questions Over Internal Controls
Investigations into the alleged theft reportedly only began in July 2025, nearly nine years after the first suspected fraudulent withdrawals.
The delay has raised serious concerns about how more than Sh149 million could allegedly leave a customer’s account over several years without triggering immediate internal audits, red flags or intervention from compliance departments.
The case has intensified scrutiny on the effectiveness of internal banking controls and fraud-detection systems within Kenyan financial institutions.
Suspects Released on Bail
During the court proceedings, defence lawyers argued that the suspects had cooperated fully with investigators from the Banking Fraud Investigations Unit and had attended all summonses since investigations began.
The court released Kassam on a Sh2 million bond or alternative cash bail of Sh500,000.
Pirbhai and Vassanji were each released on a Sh1 million bond or Sh300,000 cash bail.
The matter is scheduled to return to court on June 17, 2026, when the prosecution is expected to provide witness statements and documentary evidence to the defence.
DTB’s Troubled History
The latest scandal adds to a growing list of controversies that have previously rocked Diamond Trust Bank.
In 2018, the lender was linked to another high-profile insider fraud case involving allegations that Sh150 million had been withdrawn from accounts belonging to a South Korean businesswoman at its Thika Road Mall branch without authorisation.
That same period also saw a former DTB branch manager in Kisii charged with allegedly stealing Sh25 million from customer fixed deposit accounts.
Regulators have previously penalised DTB over compliance failures.
The Central Bank of Kenya fined the bank Sh80 million in connection with suspicious transactions linked to the National Youth Service scandal, citing failures in reporting and customer due diligence procedures.
The bank also came under scrutiny after investigations into the 2019 Dusit D2 terror attack revealed suspicious transactions allegedly passed through a DTB Eastleigh branch account without being flagged to authorities.
Industry-Wide Concerns
The unfolding Sh149 million fraud case has reignited debate about insider collusion, weak banking oversight, and the vulnerability of customers to sophisticated internal fraud schemes.
Analysts say the case could become a defining test of accountability within Kenya’s banking sector, particularly regarding how financial institutions monitor employee access to customer accounts and the approval of transactions.
For Rozina Nurdin Patelia, the customer at the centre of the alleged fraud, the case represents a devastating breach of trust by those expected to protect her savings.
For DTB and regulators, however, the scandal may ultimately become a larger test of whether Kenya’s banking system has done enough to protect customers from insider manipulation and systemic abuse.