The Director of Public Prosecutions (DPP) has secured 10-year prison terms for three family members convicted of money laundering and defrauding Kisumu-based Such Enterprises Limited of goods and customer payments worth KSh113.2 million.
In a statement issued on November 2, 2026, the DPP said the Kisumu Magistrate’s Court found the three guilty on all six counts in a fraudulent scheme carried out between October 2020 and July 2021.
Senior Principal Magistrate Fatuma Rashid found the three guilty of all six counts following a prosecution led by Deputy Director of Public Prosecutions Daniel Karuri and Principal Prosecution Counsel Douglas Moseti.
The charges included money laundering contrary to Section 3(a), (b), (i), (ii) and (iii), read together with Section 16(1)(a) of the Proceeds of Crime and Anti-Money Laundering Act.
In addition, they were also convicted of acquiring and possessing proceeds of crime contrary to Section 4(a), (b) and (c), read together with Section 16(1)(a) of the same Act, as well as conspiracy to commit a felony under Section 393 of the Penal Code.
“The Director of Public Prosecutions (DPP) has today secured a 10-year jail sentence for three family members convicted by the Kisumu Magistrate’s Court for money laundering contrary to Section 3(a), (b), (i), (ii) and (iii), as read with Section 16(1)(a) of the Proceeds of Crime and Anti-Money Laundering Act,” part of the statement read.
A former accountant among the accused faced additional charges of stealing by servant under Section 281, fraudulent false accounting under Section 330(b), and stealing under Section 275, read with Section 268 of the Penal Code.
Additionally, the court convicted the other two accused of stealing under Section 275, read with Section 268 of the Penal Code.
In her findings, Magistrate Rashid identified the former accountant as the mastermind of the scheme, saying he provided his co-accused with accounts into which customer payments were deposited to conceal the trail of the money.
Also Read: Former University Student Sentenced to Death Over Colleague’s Abduction and Murder
How the KSh113.2 Million Fraud Was Carried Out
The charges arose from the diversion of customer payments and wholesale goods worth KSh113,227,529 from Such Enterprises Limited.
According to the prosecution, the former accountant manipulated the company’s accounting system by creating fictitious transactions and diverting customer payments to bank and mobile money accounts linked to his two co-accused.
The court heard that customers were instructed to deposit money for goods into accounts associated with the three, rather than the company’s official accounts.
Evidence presented by the prosecution, including forensic document examination, showed that the former accountant used his access privileges to alter company records and conceal the transactions.
An audit report also identified KSh113,227,529 that had not been accounted for.
The prosecution called witnesses, including company employees, customers, bank officials, forensic examiners, and investigating officers, to explain how the scheme was executed, while the three accused denied the charges.
However, the court rejected the accused’s defense, finding that the prosecution had demonstrated a coordinated scheme to defraud the company and conceal the proceeds.
Also Read: University Driver Faces 12 Charges Over Fatal Awasi Crash That Killed Students
Win for DPP as Court Orders Convicts to Serve 10 Years
The court sentenced the three to 10 years in prison each for money laundering and a further 10 years each for acquiring and possessing proceeds of crime.
Further, the accused also received five-year sentences each for conspiracy to commit a felony.
According to the ruling, the former accountant received an additional five-year sentence for stealing, while the other two accused were each handed three years in prison for stealing.
However, Magistrate Rashid ordered that all the sentences run concurrently, and each of the three to serve an effective prison term of 10 years.
The court imposed the convictions and sentences under Section 215 of the Criminal Procedure Code.
“Hon. Rashid found the Prosecution had proved their case against the three on all the counts. Consequently, she proceeded to convict and sentence them pursuant to Section 215 of the Criminal Procedure Code. The terms will run concurrently,” DPP stated.
The convicts have 14 days to appeal against both their convictions and sentences.
Follow our WhatsApp Channel and X Account for real-time news updates and subscribe to our YouTube Channel for in-depth interviews.
