How a Key NYS Suspect Made Large Withdrawals as Bank Staff Observed
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An employment dispute between Standard Chartered Bank Kenya and a former branch manager has revealed fresh details about how James Thuita, one of the prime suspects in the National Youth Service (NYS) theft scandal, made large cash withdrawals under the watch of bank staff without raising internal red flags.
Court filings from the Employment and Labour Relations Court show how Thuita, who allegedly received over KSh 1.1 billion from NYS in 2017, was treated as a priority client at the bank’s Kenyatta Avenue branch.
The revelations came to light during a case filed by Anastacia Nyambura Wambui, the branch’s former manager, who contested her 2018 dismissal over allegations linked to her interactions with Thuita.
Wambui was terminated after being accused of irregularly handling cash withdrawals for Thuita, including allegedly offering him a bag to carry Sh2 million in cash. She denied the accusation, arguing that the client had his own bag.
She additionally maintained that she served Thuita over 100 times during her tenure and could not recall specific details about every interaction.
The court awarded her KSh 3.34 million, ruling that the bank failed to justify her termination. The court ruled that the bank had not provided sufficient evidence to support its claims and concluded that her dismissal was unlawful.
Evidence presented in court included CCTV images capturing Wambui carrying a bag and meeting a male client in her office, believed to be Thuita. A teller is seen delivering Sh2 million in cash to her office, after which the client exits with the bag.
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In another instance, Thuita reportedly withdrew Sh4.5 million in cash, later depositing Sh3 million back into his account and leaving with the balance.
CCTV footage also indicated a familiar relationship between Thuita and some bank staff. Employees were seen assisting him with cash handling and, in some cases, offering bags for transporting the withdrawn money to his vehicle.
Standard Chartered Bank Kenya was one of five commercial banks fined by the Central Bank of Kenya (CBK) in 2020 for failing to flag suspicious NYS-related transactions.
The bank processed over KSh 1.62 billion linked to NYS and paid a KSh 100 million settlement to avoid criminal prosecution of its senior executives. It was also fined KSh 77.5 million for non-compliance with anti-money laundering obligations.
According to CBK, some of the accounts used in the scandal were opened just hours before receiving NYS funds. Regulators cited the bank’s failure to conduct due diligence, document the origin and purpose of the funds, and report the unusually large transactions as required by law.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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