The Ethics and Anti-Corruption Commission (EACC) has arrested and held nine suspects for questioning in connection with the alleged embezzlement of KSh1.57 billion linked to a government programme funded through a loan from the International Fund for Agricultural Development (IFAD).
In a statement on Tuesday, August 18, EACC said investigations established that KSh 1.569 billion was fraudulently disbursed from the National Treasury Development Account to the PROFIT Programme and subsequently channeled to 23 private entities, 15 business names and eight companies, for goods and services that were never supplied or rendered.
According to the EACC’s quarterly report, investigators established that KSh1.56 billion was allegedly deposited into a bank account opened in the name of Programme for Rural Outreach of Financial Innovations and Technologies (PROFIT) after the programme’s official account had already been closed.
The commission said the new account was allegedly opened using forged National Treasury documents, making it appear to be an authorized account belonging to the government programme. The funds were subsequently moved through a series of transactions.
Out of the total money deposited into the account, KSh784.7 million was transferred to 23 companies, while another KSh768.2 million was allegedly withdrawn in cash.
The EACC has since recommended action against individuals linked to the alleged scheme and is pursuing recovery of the suspected public funds.
Upon investigations, EACC established that programme officials used false and forged documents to account for the funds.
In addition, the officials allegedly opened an unauthorized bank account in the name of the PROFIT Programme.
After concluding its investigations, the EACC forwarded the inquiry file to the Director of Public Prosecutions (DPP), who approved the prosecution of 20 public officials, companies, and company directors. Among those arrested on Tuesday were senior Treasury officials and owners of the companies involved.
About IFAD Programme
The Programme for Rural Outreach of Financial Innovations and Technologies was launched in 2010 as a financial inclusion initiative targeting small-scale farmers.
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It sought to improve access to agricultural credit through credit guarantees, lending through microfinance institutions and capacity-building initiatives.
Kenyan government and IFAD, a specialized United Nations agency focused on reducing rural poverty and improving agricultural development in developing countries, jointly supported it.
The programme officially ended on December 31, 2019, with its official bank account subsequently closed.
However, the EACC investigation found that money continued to be channelled through an account established in PROFIT’s name after the programme had ended.
Investigators allege that forged documents were used to create the new account and facilitate the movement of the funds.
On June 18, EACC had pursued asset recovery measures after tracing alleged proceeds of the scheme to properties and bank accounts.
The PROFIT investigation is part of a wider EACC crackdown on suspected corruption and economic crimes involving public resources.
The commission’s quarterly report identified cases involving at least KSh1.87 billion in suspected losses across the National Treasury and several county governments.
Also Read: EACC Exposes Fake Academic Certificates at KAA, IEBC, Auditor General’s Office
Other Ongoing EACC Cases
On August 8, the EACC arrested a Kitui County Chief Officer and five company directors over alleged conflict of interest and procurement irregularities involving county contracts worth KSh17.4 million.
In a statement on August 6, the anti-graft agency said investigations established that the county official allegedly used companies linked to close relatives and associates to conduct business with the County Government while serving as an Accounting and Authorized Expenditure (AIE) holder.
According to EACC, the five companies were awarded contracts valued at KSh17,484,484.49, with the county paying out more than KSh14.1 million between the 2018/2019 and 2024/2025 financial years.
Other cases under investigation include an alleged KSh187.8 million procurement scandal in Garissa County, involving the construction of a pavilion and perimeter wall at Garissa Primary School. The EACC also investigated a KSh95 million land acquisition in Nakuru County, where investigators raised concerns over the price and suitability of land intended for a health center.
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