The Ethics and Anti-Corruption Commission (EACC) has secured a major victory in its fight against corruption following the conviction and sentencing of 10 individuals and companies involved in a Ksh 51 million fraud linked to the County Government of Kilifi.
In a sentencing ruling delivered by Chief Magistrate E.K. Usui of the Malindi Anti-Corruption Court, the Court observed that the offences occasioned significant economic loss to Kilifi County and undermined development efforts intended to improve the welfare of residents. The Court further noted that the proceeds of crime were largely utilized for personal enrichment and had not been refunded.
The convicted persons and entities were found to have benefited from the illegal and fraudulent transfer of public funds between 19 September and 7 October 2016, during which officials of the County Government of Kilifi irregularly paid out Ksh 51,569,775 for services not rendered and goods not supplied to six private companies.
The companies include; Daima One Enterprises, Zohali Services Limited, Makegra Suppliers Limited, Kilingi Investments Limited, Leadership Edge Associates and Jahazi Investments Company Limited.
While considering mitigation, the Court acknowledged that the convicts were first offenders, family breadwinners, and had endured lengthy trial proceedings and financial strain during the pendency of the case.
However, the Court emphasized the growing prevalence of corruption and economic crimes in the country and underscored the need for deterrent sentences.
The Court imposed substantial fines, mandatory penalties equivalent to the benefits derived from the offences, and custodial sentences in default of payment. All sentences relating to each accused person are to run consecutively.
Among those sentenced was Sarah Wangui Kamau who was fined Ksh 17,461,880, including mandatory penalties equivalent to benefits derived from the offences. In default of payment, she will serve a cumulative prison term of 5 years and 8 months.
Mary Munyiva Kamau was sentenced to cumulative fines totaling Ksh 26,026,356, including mandatory penalties equivalent to benefits derived from the offences. In default, she will serve 13 years’ imprisonment.
Makegra Supplies Limited through its director Mary Munyiva Kamau, was fined a cumulative Ksh 25,726,356, with a default custodial sentence of 10 years.
Stephen Mutua Nguzi received cumulative fines totaling Ksh 16,301,904. In default, he will serve 7 years’ imprisonment.
Kilingi Investment Company Limited through its director Stephen Mutua Nguzi, was fined Ksh15,901,904, with a default custodial sentence of 5 years’ imprisonment.
Samuel Buku Macharia was sentenced to cumulative fines totaling Ksh 18,581,820. In default, he will serve 7 years’ imprisonment.
Leadership Edge Associates through its director Samuel Buku Macharia, was fined Ksh18,181,820, with a default custodial sentence of 5 years’ imprisonment.
Lucy Wanjugu Kibogo received cumulative fines amounting to Ksh 38,288,054, inclusive of mandatory penalties tied to benefits obtained from the offences. In default, she will serve 15 years and 6 months’ imprisonment.
Jahazi Investment Company Limited through its director Lucy Wanjugu Kibogo, was fined Ksh 15,205,900 and faces 6 years and 6 months’ imprisonment in default.
Zohali Services Limited through its director Lucy Wanjugu Kibogo, was fined a cumulative Ksh24,461,290, with a default custodial sentence of 13 years’ imprisonment.
The Court granted all convicts 14 days within which to lodge an appeal.
Welcoming the ruling, EACC described the judgment as a strong affirmation of Kenya’s commitment to accountability, integrity in public service, and the fight against corruption and money laundering.
“The ruling sends a clear message that individuals and entities involved in the theft and laundering of public funds will be held personally accountable for their actions,” said EACC.
EACC said it will remain steadfast in its mandate to investigate corruption, recover stolen public assets, and safeguard public resources for the benefit of all Kenyans
