A staggering Sh1.55 billion, intended to transform the lives of Kenya’s small-scale farmers, is now at the centre of a major fraud probe targeting senior officials within the National Treasury.
The Ethics and Anti-Corruption Commission (EACC) has filed explosive court documents detailing how a cabal of insiders allegedly siphoned funds from the Rural Outreach of Financial Innovations and Technologies (PROFIT) programme, a UN-backed initiative designed to pull rural communities out of poverty .
The scandal has prompted the EACC to seek court orders to freeze assets, including buildings and bank accounts, linked to the embezzlement.
The High Court is now handling asset recovery proceedings as investigators pursue money allegedly lost through fake payments, forged documents and suspicious withdrawals .
The International Fund for Agricultural Development (IFAD), the UN agency that co-funded the project, has also launched an internal audit .
The Mechanics of the Heist
Court documents reveal a scheme of breathtaking audacity that continued for years after the PROFIT programme officially ended on December 31, 2019.
The EACC alleges that officials exploited weak management systems to keep the programme’s bank accounts active and fraudulently process payments .
At the centre of the operation, according to the EACC, are two individuals: Billy Otieno Obango, the former accountant for the PROFIT programme, and Gladys Julliet Chepkarat.
Investigators allege that between November 2019 and June 2022, Obango made a staggering Sh799.84 million in cash withdrawals from the programme’s account at Co-operative Bank of Kenya.
Chepkarat is accused of personally withdrawing Sh16.1 million and, along with Obango, allegedly opened a ghost bank account at KCB in the name of PROFIT in October 2022, nearly three years after the project had concluded, using false documents.
A total of Sh175.3 million was subsequently disbursed into this fictitious account from the Treasury .
A Web of Enablers at the Treasury
The alleged fraud was not the work of a few rogue actors. The EACC has named a network of senior Treasury officials accused of facilitating the theft or failing in their duty to prevent it.
Those named in court documents include John Maina Muriithi, a senior accountant at the National Treasury; Nemwel Moturi Mutonya, also a senior accountant; Lilian Wanjiku Dishon, the Senior Deputy Accountant General; George Kihara, Head of the Accounting Unit; and Susan Warukira, a Principal Accountant .
The funds were allegedly channelled through fraudulent payment vouchers that bypassed standard two-stage approval processes, requiring only a single authorisation.
The suspects allegedly invoked IFAD’s name on fabricated documents, claiming the donor had requested funding for activities that had long since ceased .
From Rural Dreams to Real Estate Empire
The stolen millions were quickly converted into a property portfolio, according to investigators.
The loot was used to acquire residential and commercial buildings in Nairobi, Machakos, and Uasin Gishu counties.
Key assets flagged in the court filings include a four-storey building known as Skyline Hotel in Eldoret, allegedly developed by Chepkarat.
Obango is accused of purchasing a residential flat in Stoni Athi, Mavoko, for Sh8.85 million and four housing units in Kamulu’s Avana Garden Estate for about Sh18.1 million .
Another company, 020 Investments Limited, described by the EACC as a proxy firm whose directors are Chepkarat’s children, allegedly received Sh104,839,792, which was used to purchase three houses in Eldoret’s Racecourse area.
Jarods Agency Limited is also named in the suit for receiving Sh40.1 million .
Scrutiny on Treasury CS John Mbadi
The scandal casts a harsh light on the National Treasury under Cabinet Secretary John Mbadi. While the alleged irregularities in the PROFIT case occurred during the administration of former President Uhuru Kenyatta, with former PS Kamau Thugge introducing the main suspects as signatories to the account in 2016 , Mbadi’s tenure has also been marred by accusations of financial mismanagement.
The Controller of Budget, Margaret Nyakang’o, has accused Mbadi of violating the law by approving Sh43.5 billion in unbudgeted additional funding to state agencies .
Furthermore, Mbadi faces scrutiny over his own financial conduct, with reports emerging of his alleged purchase of a Sh100 million property in cash, a claim he has not publicly addressed.
His leadership has been widely criticised for budget cuts to essential services, including healthcare and education, while the Treasury appears to have failed to prevent the loss of billions .
The PROFIT scandal represents a profound betrayal of Kenya’s rural poor, who were supposed to benefit from improved access to credit and financial services.
As the EACC pursues asset recovery in court, the case serves as a stark reminder of the systemic corruption that continues to drain public funds and undermine development in Kenya. The question remains whether these explosive allegations will lead to real accountability.
