10 Convicted in Ksh52 Million Kilifi County Scam Sentenced to 75 Years in Jail

Ten individuals and companies linked to the fraudulent loss of more than Ksh52 million from Kilifi County coffers have been sentenced to a combined 75 years in prison after being found guilty of corruption-related offences by the Anti-Corruption Court in Malindi.

In a ruling delivered on Tuesday, June 2, the court convicted the accused on multiple counts, including fraudulent acquisition of public funds, forgery, money laundering, and conspiracy to commit economic crimes. The court also imposed fines exceeding Ksh198 million in addition to the lengthy prison terms handed to the convicted individuals.

The case arose from a 2016 scheme in which senior county finance and accounts officers allegedly manipulated the Integrated Financial Management Information System (IFMIS) to facilitate payments for goods and services that were never supplied to the county government.

Investigations conducted by the Ethics and Anti-Corruption Commission (EACC) established that approximately Ksh51.5 million was irregularly transferred from county accounts to six private companies that existed only on paper and had no record of delivering any services.

The fraudulent payments triggered investigations that led the Central Bank of Kenya (CBK) to freeze part of the money. However, investigators discovered that a significant portion of the funds had already been withdrawn from various bank accounts in Nairobi and other parts of the country before the freeze could take effect.

County officials linked to the scheme were first charged in court in 2018 and released on a Ksh5 million bond pending investigations and prosecution.

The hearing formally commenced in July 2024, with the prosecution presenting witnesses and financial records that traced the movement of funds from Kilifi County accounts to the beneficiary companies.

According to evidence presented in court, the six companies were used as conduits to siphon public funds through fictitious procurement transactions. Witnesses testified that the firms were awarded payments for supplies and services that were never delivered.

Court proceedings further revealed that a former IFMIS liaison officer, working alongside senior county finance clerks, manipulated system credentials and bypassed established approval procedures to authorise the illegal transactions.

The prosecution successfully argued that the accused coordinated electronic transfers directly from Kilifi County's account at the CBK to the beneficiary companies, enabling the fraudulent withdrawal of public resources.

The judgment marks one of the most significant corruption convictions involving county government funds in recent years and is expected to strengthen efforts to hold public officials accountable for the misuse of taxpayer money.