The anti-graft agency said nine suspects were arrested following investigations into the alleged fraudulent disbursement of Sh1,569,582,338.2 under the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme, implemented by the National Treasury with funding from the International Fund for Agricultural Development (IFAD).
EACC investigations established that the money was allegedly diverted to private entities for goods and services that were never supplied or rendered. The commission said an unauthorized bank account was also opened in the name of the PROFIT Programme at KCB, through which Sh175 million was received and allegedly laundered and embezzled. Investigators uncovered an elaborate scheme in which programme officials allegedly used false and forged documents to account for the money.
The arrests followed the conclusion of investigations and the forwarding of the inquiry file to the Director of Public Prosecutions (DPP), who approved prosecution of 20 public officials, companies and company directors. The suspects face charges including unlawful acquisition of public property, abuse of office, money laundering, acquisition of proceeds of crime and uttering false documents, among other offences. Among those arrested are PROFIT Programme Coordinator John Ngure Kabutha, National Treasury Head of Accounting Unit Namwel Moturi Motanya and Senior Accountant John Maina Muriithi.
The alleged fraud touches a programme designed to improve financial access for small-scale farmers, raising questions over the extent to which funds intended to support vulnerable rural communities were diverted during the programme's decade-long implementation. EACC Chief Executive Officer Abdi Mohamud said the commission remained focused on safeguarding public resources and holding accountable those responsible for their loss or misappropriation. The commission has also directed 11 additional suspects to present themselves at the EACC Integrity Centre in Nairobi or the nearest EACC office for processing.
The latest arrests widen the scope of the investigation beyond National Treasury officials to private businesses allegedly used to receive funds from the programme. EACC said its action would not be limited to criminal prosecution, with investigators also pursuing recovery of money and assets allegedly acquired through corruption. The suspects are expected to be arraigned before the Milimani Law Courts, where they will have an opportunity to respond to the allegations.
