The Ethics and Anti-Corruption Commission (EACC) has arrested nine people over the alleged fraudulent disbursement and embezzlement of more than Sh1.57 billion from a government-funded programme.
In a statement issued on Tuesday, the anti-graft agency said the arrests followed investigations into the alleged fraudulent release of Sh1,569,582,338.20 from a programme implemented by the National Treasury with support from an international development partner.
Sh1.57 Billion Allegedly Channelled to Private Firms
According to EACC, investigations established that the money was allegedly transferred from a National Treasury development account and subsequently channelled to 23 private entities for goods and services that investigators believe were never supplied or delivered.
The programme was designed to support small-scale farmers by improving access to affordable financing and was implemented between the 2013/2014 and 2023/2024 financial years.
EACC further alleges that programme officials used false and forged documents to account for the funds.
Investigators also identified an allegedly unauthorised account opened in the name of the programme. The account reportedly received Sh175 million, which was allegedly laundered and misappropriated, with a significant portion withdrawn in cash.
EACC Identifies Links Between Officials and Companies
The commission said it also established financial links between programme officials and some of the private entities that received funds.
According to EACC, the links raised concerns over compliance with public financial management and accountability requirements.
Following the conclusion of its investigations, the commission said it forwarded the inquiry file to the Director of Public Prosecutions (DPP).
The DPP subsequently approved the prosecution of 20 public officials, companies and company directors.
Those approved for prosecution are expected to 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.
Nine Suspects to Appear in Court
The nine people arrested on Tuesday are expected to appear before the Milimani Law Courts on Wednesday.
EACC has also directed 11 other individuals named in the investigation to present themselves at its Integrity Centre in Nairobi or the nearest EACC office for processing.
Beyond the criminal proceedings, the commission said it would pursue the recovery and forfeiture of public funds and assets found to have been acquired through alleged corrupt conduct or other unlawful means.
“The EACC remains committed to protecting public resources and ensuring persons responsible for loss or misappropriation are held accountable,” the commission said.
The suspects remain innocent unless proven guilty in court.
