The Ethics and Anti-Corruption Commission (EACC) has obtained an order requiring the former Homa Bay County Assembly Clerk and two others to pay the Government KSh 12,571,166.50 in public funds.
In a statement issued by the Commission on October 22, the EACC explained that the funds were fraudulently paid from the Assembly’s salary suspense account.
Justice Benjamin Musyoki ruled in favour of the EACC, finding that the Assembly’s payments were unlawful in a judgment delivered on October 16, 2026.
The ruling followed a recovery suit the commission filed under ACEC Suit No. E011 of 2022, seeking the return of public money transferred to a joint bank account as salary payments.
How Ksh12.57 Million Was Transferred.
According to investigations by the EACC, the former assembly clerk authorised transfers totalling KSh12,571,166.50 to a joint bank account held by the two recipients between December 24, 2015, and December 22, 2017.
Investigators established that one recipient was a teacher employed by the Teachers Service Commission (TSC). At the same time, the other worked as a Business Growth and Development Manager at Equity Bank’s Homa Bay branch during the period under investigation.
In addition, the commission stated that neither recipient supplied or contracted with the county government or the assembly.
“Investigations established that between December 24, 2015, and December 22, 2017, the Assembly Clerk authorized transfers totaling KES 12,571,166.50 to the joint account. The payments were presented as salaries despite neither recipient being an employee of the Cunty Assembly of the County Assembly or the County Government,” the EACC statement read.
The transfers involved varying amounts paid on sporadic dates, a pattern that investigators considered inconsistent with regular salary payments.
Investigators traced the funds to three public accounts: the county government’s recurrent account and the Assembly’s recurrent account, both held at the Central Bank of Kenya, and an Assembly account held at Co-operative Bank.
Evidence presented by the EACC indicated that the two married suspects subsequently withdrew money credited to the joint account.
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Payroll And Banking Records Examined
Appearing before the court, the Assembly human resource and payroll officials confirmed that the recipient of the payments was not an employee of the County Assembly.
The Assembly’s Principal Human Resource Manager told the court that it assigned employees personal numbers to process their payroll.
In addition, a forensic investigator from the EACC testified that investigators examined the Integrated Financial Management Information System (IFMIS) for transactions relating to the payments.
However, the search found no payments or invoices in the system in the recipient’s favour.
Further, a bank witness testified that the Assembly had channeled the disputed credits through the suspense account.
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Defendants on EACC Findings
The defendants denied that the money was paid unlawfully and argued that the transfers related to services and works undertaken through Damila Enterprises.
According to the former assembly clerk, the enterprise offered services to the assembly, including catering for the funerals of three Assembly members, as well as other work allegedly undertaken for the Assembly and the county government.
The court examined agreements, quotations, and other documents supporting the claimed services, and the defendant’s evidence referred to payments of about KSh6 million for the funeral catering.
However, other evidence presented to the court showed a figure of KSh7 million, under which the judge found that the explanation did not account for the full amount transferred to the joint account.
The court calculated that documents relating to the three alleged catering services supported a total of KSh7,106,890, leaving KSh5,464,276.50 of the KSh12,571,166.50 unaccounted for, ordering the defendants to pay the amount in full.
“Judgment is hereby entered jointly and severally against the Defendants and in favor of the Plaintiff for a sum of KSh. 12,571,166.50. The sum shall attract interest at court rates from the date of filing this suit until payment in full,” Justice Benjamin Musyoki ruled.
In addition, the judge found that the documents did not demonstrate compliance with the procedures governing direct procurement under the Public Procurement and Asset Disposal Act.
The former clerk argued that some procurement documents were unavailable following a raid on his offices and a fire.
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