EACC arrests nine over alleged Sh1.57bn fraud

The Ethics and Anti-Corruption Commission (EACC) has apprehended senior National Treasury officials and business owners in connection with a Sh1.57 billion fraud scheme linked to funds meant for small-scale farmers through the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme. Nine suspects were arrested on Tuesday, following probes into the alleged misuse of Sh1,569,582,338.20 disbursed under the program, initiated by the National Treasury and funded by the International Fund for Agricultural Development (IFAD).

The commission alleged that the money was siphoned off to private entities for goods and services never delivered. The PROFIT Programme, in operation from 2013/2014 to 2023/2024, aimed to enhance access to affordable financing for small-scale farmers. EACC investigators discovered that officials had used forged documents to justify the expenditure.

An unauthorized bank account linked to the program received Sh175 million, which was reportedly laundered and embezzled. Financial ties were also found between officials and recipients of the illicit funds, contravening public financial management rules. The arrests followed the forwarding of the investigation file to the Director of Public Prosecutions (DPP), who authorized the prosecution of 20 public officials, companies and directors.

Among those apprehended are John Ngure Kabutha, Namwel Moturi Motanya, and John Maina Muriithi, as well as business owners like Gladys Juliet Oroni and Brian Kiprop Chepkarat. The nine suspects are set to be arraigned at Milimani Law Courts on Wednesday, August 19. Additionally, 11 more suspects have been directed to appear at the EACC Integrity Centre or nearest EACC office for processing.

EACC CEO Abdi Mohamud emphasized the commission's commitment to safeguarding public resources and holding accountable those responsible for their misuse.