Kenyan in Ksh99.5 Billion USAID Theft Case Charged in U.S

A Kenyan national has been charged in a U.S. federal court for allegedly diverting USAID-funded medical supplies worth approximately Ksh99.5 billion ($650 million) from the Kenya Medical Supplies Authority (KEMSA).

Eric, 40, and his co-accused, a 42-year-old Guyanese national, Rampersaud, allegedly conspired to illegally profit from HIV test kits and other medical commodities intended for Kenyan patients.

“A long-term investigation concluded today with the unsealing of an indictment in the District of South Carolina charging two foreign nationals with conspiring against the United States to illegally divert U.S.-funded global health commodities from a Kenyan government-run corporation, Kenya Medical Supplies Authority (KEMSA),” read part of a statement from the U.S. Attorney’s Office.

Investigation and Charges for Eric Mwangi

The investigation, led by the Office of the Inspector General for USAID, revealed that Eric and his company systematically stole medical commodities between 2014 and 2019.

Rampersaud and his company purchased the stolen goods, obtained fraudulent authorisation to operate as a distributor, and resold the items to secure lucrative government contracts.

“These defendants jeopardised a vital public health mission and caused a significant loss to the American taxpayers,” said U.S. Attorney Bryan Stirling for the District of South Carolina.

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“This was an incredibly complicated investigation, spanning years and an ocean,” he added.

Between 2015 and 2019, Rampersaud paid Eric over Ksh27Million (over $177,000) for the diverted medical supplies, including USAID-funded HIV test kits. He then sold the stolen commodities to the Guyanese government, profiting further.

Legal Proceedings and Program Impact

Rampersaud later pleaded guilty to conspiracy and theft and was sentenced to three years of supervised release and Ksh12,800,000 ($84,000) fine.

Eric, meanwhile, is facing trial in Kenya on related theft and fraud charges and could face up to 20 years in prison if convicted on U.S. charges.

“The stolen goods included HIV test kits meant for Kenya, which were later sold to the Guyanese government,” U.S. authorities said.

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The USAID-funded KEMSA Medical Commodities Program (MCP) was designed to establish a secure and sustainable supply chain for commodities related to HIV/AIDS, malaria, nutrition, and family planning.

The program aims to ensure reliable care and treatment for vulnerable populations in Kenya.

“All charges are merely accusations, and defendants are presumed innocent until proven guilty,” the U.S. Attorney’s Office emphasised.

The case involved cooperation among multiple agencies, including the U.S. Department of Justice, U.S. Customs and Border Protection, Homeland Security Investigations, and the Department of State’s Regional Security Offices in Nairobi, Kenya, and Georgetown, Guyana.

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