The Ethics and Anti-Corruption Commission (EACC) has arrested nine suspects, including senior National Treasury officials, over the alleged embezzlement of Ksh1.57 billion from the Programme for Rural Outreach of Financial Innovations and Technologies (PROFIT).
The suspects are currently being held at the EACC’s Integrity Centre in Nairobi as investigators process the case ahead of their expected arraignment at the Milimani Law Courts. The arrests follow a comprehensive investigation into fraudulent disbursements from a financial inclusion programme funded through a loan from the International Fund for Agricultural Development (IFAD).
How the Ksh1.57 Billion Scheme Unfolded
According to the EACC’s latest quarterly report, investigators discovered that more than Ksh1.56 billion was fraudulently deposited into a bank account opened in the name of the PROFIT programme after its official account had already been closed. The suspects allegedly used forged National Treasury documents to open the new account, creating the impression that it was a legitimate account belonging to the programme.
The investigation established that:
- Ksh784.7 million was subsequently transferred to 23 companies
- Another Ksh768.2 million was allegedly withdrawn in cash, raising serious questions over how the funds were authorised and disbursed
Investigators also established that Ksh175 million was received through an unauthorised KCB Bank account opened in the programme’s name, with a substantial portion withdrawn in cash. Programme officials allegedly used false and forged documents to account for the funds.
Suspects Arrested and Charges
Among those arrested on Tuesday, August 18, 2026, are:
Senior National Treasury Officials:
- John Nguge Kabutha – PROFIT Programme Coordinator
- Namwel Moturi Motanya – Head of Accounting Unit, National Treasury
- John Maina Muriithi – Senior Accountant, National Treasury
Business Owners and Directors:
- Gladys Juliet Oroni (alias Gladys Juliet) – Proprietor of Mawindo Enterprises, Briggs Agencies, and Green Basil Agencies
- Brian Kiprop Chepkarat – Proprietor of El Konyinta Technologies
- Ian Kwemoi Chepkarat – Director of O20 Investments Limited and Vidi Vici LTD
- Josephat Kamau Kamoshe – Director of Blue Dart Agencies Limited
- James Omwodo Ndai – Proprietor of Ednas Agencies, Prozepp Technologies, and Steeren Enterprises
- Jimmy Carter Odoyo Osodo – Proprietor of Cadnic Investments
The suspects face charges including unlawful acquisition of public property, abuse of office, money laundering, acquisition of proceeds of crime, and uttering false documents. Upon conclusion of investigations, the EACC forwarded the inquiry file to the Director of Public Prosecutions (DPP), who approved the prosecution of 20 public officials, companies, and company directors.
EACC Pursues Recovery of Funds
The anti-graft agency has confirmed that it will pursue the recovery and forfeiture of public funds and assets established to have been acquired through corrupt conduct or other unlawful means. Court documents indicate that part of the siphoned cash was used to purchase residential and commercial buildings in Nairobi, Machakos, and Uasin Gishu counties.
The High Court has allowed the EACC to seize assets and barred the Treasury officials and their associates from transferring, withdrawing, or dealing with the assets and funds held in bank accounts pending the hearing and determination of a recovery suit.
Wider Corruption Investigations
The EACC said the wider investigations have uncovered suspected corruption and economic crimes involving at least Ksh1.87 billion in public funds across the National Treasury and several county governments. The agency has directed 11 other suspects to present themselves at the EACC Integrity Centre or the nearest EACC office for processing.
Those required to present themselves include:
- Billy Otieno Obango (alias Billy Obango) – PROFIT Programme Accountant
- Auma Ritah Otieno – Proprietor of Ritashell Enterprises
- Paul Mukasiali Shilaho – Proprietor of Kemula Agencies and Shilal Supplies
- Susan Wangari Gathiaka – Proprietor of Maxtor Supplies and Graybar Distributors
- Erick Otieno Achila – Proprietor of Dangzerina Enterprises
- Directors of Laudrups Kenya Ltd, Kikwetu Holdings Limited, Kaplan Logistics Limited, and Jarods Agency Limited
About the PROFIT Programme
The Programme for Rural Outreach of Financial Innovations and Technologies (PROFIT) was launched in 2010 to improve access to credit for small-scale farmers through credit guarantees, lending through microfinance institutions, and capacity-building initiatives. The programme was implemented between the 2013/2014 and 2023/2024 financial years.
The programme officially ended on December 31, 2019, but the EACC alleges that funds continued to be channelled through its accounts after its closure. The total funding to the PROFIT programme was approximately $30.9 million (approximately Ksh4 billion at current exchange rates), shared between IFAD and the Government of Kenya.
IFAD Response
The International Fund for Agricultural Development (IFAD), a specialised agency of the UN that addresses poverty and hunger in rural areas, has opened an audit of the programme following the revelations. The UN agency stated:
“While the Fund cannot comment on ongoing legal proceedings, we take this and all allegations of fraud seriously… In accordance with IFAD’s zero-tolerance approach to fraud, corruption and other prohibited practices, we have referred this matter to the Fund’s Office of Audit and Oversight and are taking all necessary steps to safeguard the integrity of IFAD financing.”
IFAD noted that the alleged theft of funds took place after the project was closed and its oversight ceased, in 2019.