The Ethics and Anti-Corruption Commission (EACC) has arrested nine suspects over the alleged embezzlement and fraudulent disbursement of Ksh1.57 billion under the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme.
The commission said its investigations established that Ksh1.569 billion was fraudulently disbursed from the National Treasury Development Account to the PROFIT Programme before being channelled to 23 private entities, 15 business names and eight companies for goods and services that were never supplied or rendered.
The PROFIT Programme was implemented by the National Treasury between the 2013/2014 and 2023/2024 financial years with funding from the International Fund for Agricultural Development (IFAD) to facilitate small-scale farmers’ access to affordable financing.
“Investigators established financial links between programme officials and some of the private entities that received the funds, in apparent contravention of public financial management and accountability requirements,” EACC said.
According to EACC, an unauthorised KCB Bank account was opened in the name of the PROFIT Programme, through which Ksh175 million was received, laundered and allegedly embezzled, with a substantial portion withdrawn in cash.
After completing its investigations, EACC said it forwarded the inquiry file to the Director of Public Prosecutions (DPP), who approved the prosecution of 20 public officials, companies and company directors.
The suspects face charges including unlawful acquisition of public property, abuse of office, money laundering, acquisition of proceeds of crime and uttering false documents, among other offences.
Among those arrested are PROFIT Programme Coordinator John Ngure Kabutha, National Treasury Head of Accounting Unit Namwel Moturi Motanya and Senior Accountant John Maina Muriithi.
The other suspects are business proprietors Gladys Juliet Oroni, Brian Kiprop Chepkarat, James Omwodo Ndai and Jimmy Carter Odoyo Osodo, as well as company directors Ian Kwemoi Chepkarat and Josephat Kamau Kamoshe.
The nine suspects are expected to be arraigned before the Milimani Law Courts on Wednesday, August 19.
The commission has also directed 11 other suspects to present themselves at the EACC Integrity Centre in Nairobi or the nearest EACC office for processing.
They include PROFIT Programme Accountant Billy Otieno Obango, Ritasshell Enterprises proprietor Auma Ritah Otieno, Kemula Agencies and Shilal Supplies proprietor Paul Mukasiali Shilaho, Maxtor Supplies and Graybar Distributors proprietor Susan Wangari Gathiaka and Dangzerina Enterprises proprietor Erick Otieno Achila.
Others are Laudrups Kenya Ltd directors Miriam Roseline Obinda, Fredrick Nyadhe Obindah and Brown Mujenyi Agade; Kikwetu Holdings Limited director Hilda Ndinda Ngava; Kaplan Logistics Limited director Charles Cheruiyot; and Jarods Agency Limited director Jackline Kagai Saisi.
“In addition to the criminal proceedings, the Commission will pursue the recovery and forfeiture of public funds and assets established to have been acquired through corrupt conduct or other unlawful means,” the commission said.
