Big blow to Prime Cabinet Secretary Musalia Mudavadi as Co-op, KCB and NCBA bosses secure court orders stopping their prosecution in the Sh363 million First Assurance saga.

Mudavadi and fellow shareholders had given the banks a 24-hour deadline to commit to refunding money prosecutors say was stolen from First Assurance by his business partner Salim Busaidy over a six-year period.

The banks refused to pay, questioning how money could allegedly be stolen by a company insider for six years, only for the banks to later be blamed and pressured to refund the entire amount.

State investigative and…