Former KMC CEO Ordered to Repay Sh11.5M in Embezzlement Case

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Nyakundi Report

Newsroom 1 min read

The High Court has ordered former Kenya Meat Commission (KMC) Chief Executive Officer Ibrahim Haji Issak to repay Sh11.5 million embezzled from the state corporation, ruling his unaccounted expenditures constituted fraud and breach of public duty.

Justice John Onyiego determined Issak failed to justify the 2012 withdrawal of funds from KMC’s First Community Bank account, which were released as an overdraft despite insufficient balances. The court mandated repayment with interest at 12% from April 2012, alongside legal costs incurred by the Ethics and Anti-Corruption Commission (EACC).

Discovery of Mismanagement

An internal audit in 2013 revealed Sh11.5 million withdrawn under the guise of a "cheque forgotten" transaction, while another Sh15.6 million disappeared, including Sh3 million without documentation from the Kenya Commercial Bank. EACC alleged these funds were diverted for personal use.

Evidence and Testimonies

A bank credit manager testified that Issak presented a 2012 letter requesting the withdrawal. The EACC, led by CEO Twalib Mbarak, presented eight witnesses to establish the irregularities. The case was filed in September 2016, following discrepancies uncovered during financial reviews.

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