The Ethics and Anti-Corruption Commission (EACC) has arrested nine people over an alleged scheme in which Ksh1.57 billion from a National Treasury programme was reportedly diverted and withdrawn.
The suspects are being held at the EACC’s Integrity Centre as investigators prepare the case for possible arraignment.
The commission is also working to trace and recover the money believed to have been lost through the scheme.
The investigation centres on the Programme for Rural Outreach of Financial Innovations and Technologies (PROFIT), a financial inclusion programme that was funded through a loan from the International Fund for Agricultural Development (IFAD).
According to findings contained in the EACC’s latest quarterly report, investigators discovered that more than Ksh1.56 billion was deposited into a bank account that had been opened using the name of the PROFIT programme.
This happened after the programme’s official bank account had already been closed.
Investigators allege that forged National Treasury documents were used to open the new account.
The documents reportedly created the impression that the account was an authorised account belonging to the programme.
Once the money was deposited, investigators established that Ksh784.7 million was transferred to 23 companies. A further Ksh768.2 million was allegedly withdrawn in cash.
The movement of the funds has raised questions about who authorised the transactions and how the money was allowed to leave the account.
The EACC is now seeking to establish the role played by each of the nine suspects as it builds the case.The PROFIT programme was launched in 2010 with the aim of improving access to credit for small-scale farmers.
It supported financial inclusion through credit guarantees, lending through microfinance institutions and capacity-building programmes.
The programme officially ended on December 31, 2019. However, the EACC says its investigations indicate that money continued to be channelled through accounts linked to the programme even after its official closure.
The case forms part of a wider investigation by the anti-corruption agency into suspected corruption and economic crimes involving at least Ksh1.87 billion in public funds.
The investigations cover the National Treasury as well as several county governments.
The latest arrests come as the EACC continues to pursue cases involving alleged misuse of public resources.
In a separate investigation last month, the commission arrested seven current and former senior Nakuru County Government officials together with a contractor over suspected procurement fraud involving more than Ksh120 million.
The Nakuru case relates to county contracts awarded between the 2020/2021 and 2024/2025 financial years. The EACC alleges that the suspects were involved in irregular procurement arrangements, including suspected conflict of interest and corruption.
The two investigations highlight the commission’s continued focus on tracing public money allegedly lost through fraudulent transactions, while also seeking to hold those responsible to account through the legal process.
