Treasury Officials, Business Owners Arrested Over KSh1.57bn Fraud in UN Project

The Ethics and Anti-Corruption Commission (EACC) has arrested two officials of the National Treasury and seven business owners over the alleged fraudulent disbursement of KSh1.57 billion from a government programme intended to expand access to finance for small-scale farmers.

• The arrests expose an alleged scheme in which public funds were routed through 23 private entities for goods and services that were never supplied, according to investigators. 
• The money was disbursed under the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme, a National Treasury initiative funded by the International Fund for Agricultural Development (IFAD) between 2013 and 2024. 
• Investigators allege the payments were supported by false and forged documents intended to create the appearance that the contracted goods and services had been delivered.

Among those arrested are John Ngure Kabutha, the programme coordinator; Namwel Moturi Motanya, head of the National Treasury accounting unit; and John Maina Muriithi, a senior accountant at the ministry. 

The other six suspects are business owners and company directors Gladys Juliet Oroni, Brian Kiprop Chepkarat, Ian Kwemoi Chepkarat, Josephat Kamau Kamoshe, James Omwodo Ndai, and Jimmy Carter Odoyo Osodo.

The arrests followed the completion of an investigation that was forwarded to the Director of Public Prosecutions. The DPP has also approved the prosecution of 20 public officials, companies and company directors including Billy Otieno Obango, Auma Ritah Otieno, Paul Mukasiali Shilaho, Susan Wangari Gathiaka, Erick Otieno Achila, Miriam Roseline Obinda, Fredrick Nyadhe Obindah, Brown Mujenyi Agade, Hilda Ndinda Ngava, Charles Cheruiyot, and Jackline Kagai Saisi.

The officials face allegations including unlawful acquisition of public property, abuse of office, money laundering, acquisition of proceeds of crime, and use of false documents.

The investigation also uncovered an unauthorised KCB Bank account opened in the name of the PROFIT Programme. About KSh175 million was received through the account, which the EACC says was used to launder and embezzle the money, with a substantial portion withdrawn in cash. 

The anti-graft agency also said it had established financial links between programme officials and some of the private entities that received the funds, which it said contravened public financial management and accountability requirements.