For over two years, two top Treasury insiders lived large off public funds. They cashed in on fake perks and bogus allowances, feeding from the same trough meant for Kenya’s struggling economy.
Now, after tireless investigations by the Ethics and Anti-Corruption Commission (EACC), Lady Justice Lucy Mwihaki has delivered a landmark judgment ordering the duo to return the Ksh39.1 million they stole.
The ruling exposes just how broken Kenya’s financial oversight is—and how deep the rot runs in the very ministry meant to guard the public purse.
Treasury Heist Uncovered as Two Officials Ordered to Return Ksh39M
A shocking financial scandal has rocked the National Treasury. Two high-ranking officials defrauded the country of Ksh39.1 million through illegal allowances and unauthorized payments. The High Court has ruled that the entire amount be refunded to the government.
The pair, a male and a female officer, manipulated government systems to enrich themselves between January 2020 and June 2022. They used outdated and revoked circulars to bypass official procedures and pocket multiple allowances that were not approved by the Salaries and Remuneration Commission (SRC).
They claimed payments for task force activities, entertainment, extraneous duties and facilitation roles—allowances that either did not exist or were clearly restricted under valid SRC advisories. These circulars are legally binding under Article 230 of the Constitution and clearly outline which payments are permitted for public servants.
According to court documents, the two officials even duplicated circulars and forged internal memos to support their claims. The EACC revealed that they awarded themselves overlapping payments for the same tasks, exploiting loopholes with no regard for oversight or accountability.
Justice Mwihaki ruled on June 4 that the male officer must return Ksh20.3 million, part of which (Ksh11.07 million) had already been frozen in his bank account. The rest, amounting to Ksh9.23 million, is to be paid in cash.
His female counterpart was ordered to refund Ksh18.86 million. Out of that, Ksh8.95 million is frozen in her account, with Ksh9.9 million to be paid directly to the government.
EACC’s Investigations Reveal Brazen Fraud Scheme
The EACC launched investigations in July 2022 after receiving multiple complaints about corruption within the Treasury. Their findings were damning.
The two officials had created a network of forged documents to justify inflated allowances. They operated unchecked, benefiting from the silence or complicity of internal auditors and supervisors. The allowances they received were not just excessive—they were illegal.
The use of revoked circulars was key to the scam. These outdated documents had been nullified years earlier, yet the officials knowingly used them to authorize payments. In some cases, they issued entirely new circulars—without authority—to justify more cashouts.
“This was a clear case of abuse of office and a calculated scheme to defraud the government,” an EACC official said.
Their actions directly violated SRC advisories, which set the legal limits for allowances and public compensation. The SRC’s role is not optional. Their guidance is binding under the Constitution and must be followed in all matters related to public pay.
Court Ruling Signals Hope But Raises Serious Questions
While the ruling has been celebrated as a victory by the EACC, it raises uncomfortable questions. How did two officials pull off such a scheme in the heart of the National Treasury for over two years? Where were the internal checks? Why didn’t anyone stop them?
The court’s decision is a positive step, but the rot appears far deeper. If two officials could quietly siphon off nearly Ksh40 million without detection, how many others might be doing the same?
The EACC has called the court’s ruling a major step toward recovering stolen funds and reinforcing accountability in public service. But unless systemic reforms follow, this victory may be short-lived.
This treasury heist is more than just a scandal—it is a wake-up call. Kenya’s financial systems are bleeding from within. The officials may be forced to return the money, but the damage to public trust may take far longer to repair.
