Kenya: EACC Arrests Treasury Officials, Business Owners Over Alleged Sh1.57bn Profit Programme Fraud

What the report says

Kenya’s Ethics and Anti-Corruption Commission said it arrested senior National Treasury officials and business owners in Nairobi over an alleged Sh1.57 billion fraud tied to the Rural Outreach of Financial Innovations and Technologies, or PROFIT, programme. The case involves funds meant to help small-scale farmers access affordable financing, according to the report distributed by AllAfrica from Capital FM.

The EACC said nine suspects were taken into custody after investigations into alleged fraudulent disbursements made under the programme, which was implemented with funding from the International Fund for Agricultural Development. Investigators allegedly found that money from the Treasury development account was routed to private entities for goods and services that were never delivered, and that false or forged documents were used to support the payments.

The commission also said an unauthorized bank account was opened in the programme’s name at KCB, through which Sh175 million was received and allegedly moved through cash withdrawals and other transactions. Among those arrested were programme and Treasury accounting officials, as well as business owners and company directors. EACC said the suspects are expected in court in Nairobi, while 11 additional people were directed to report for processing.

The agency said it would also seek recovery and forfeiture of public funds and assets linked to the alleged scheme. More broadly, the case highlights the risks of corruption in long-running development programmes intended to support rural communities and improve access to finance.