Detectives from the Banking Fraud Investigation Unit (BFIU) have arrested and arraigned Seth Mwabe Okwanyo, also known as Seth Onyango Odhiambo, over an alleged cyber fraud scheme that led to the loss of KSh 11.4 million from a microfinance institution.
According to investigators, the case arose from a formal complaint lodged by the institution following a series of suspicious transactions carried out on July 16, 2025.
On that day, 38 transactions were processed through the institution’s system, resulting in a total loss of KSh 11,410,165. However, the transactions were reportedly not reflected in the institution’s internal records, despite appearing as successful on the recipients’ end.
Detectives said the discrepancy pointed to deliberate interference with the system’s visibility and control mechanisms.
Further forensic investigations allegedly revealed that system and database logs had been erased, raising suspicion of a coordinated attempt to cover up the activity. Investigators also discovered the unauthorised installation of a Java-based application within the institution’s system, which they believe was used to manipulate transaction processes.
Police allege that Okwanyo used the compromised system to transfer the funds before channelling the proceeds through various accomplices in a bid to conceal the source of the money.
He was charged with multiple offences, including unauthorised access to a computer system, computer fraud and money laundering.
Okwanyo pleaded not guilty to all 20 counts. The court released him on a bond of KSh 1.5 million or an alternative cash bail of KSh 500,000.
The case is set for mention on March 3, 2026, as investigations continue.
