The Ethics and Anti-Corruption Commission (EACC) has arrested nine suspects, including senior National Treasury officials and business owners, over the alleged embezzlement and fraudulent disbursement of Sh1.57 billion from an IFAD-funded programme.
The commission said the suspects are linked to the alleged loss of Sh1,569,582,338.20 from the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme, implemented by the National Treasury with funding from the International Fund for Agricultural Development (IFAD).
According to EACC, investigations established that the money was fraudulently disbursed from the National Treasury Development Account to the PROFIT Programme before being channelled to 23 private entities, 15 business names and eight companies for goods and services that were allegedly never supplied or rendered.
The programme was implemented between the 2013/2014 and 2023/2024 financial years and was intended to improve access to affordable financing for small-scale farmers.
EACC said investigators also uncovered the use of false and forged documents to account for the funds.
The commission further said programme officials opened an unauthorised KCB Bank account in the name of the PROFIT Programme, through which Sh175 million was received, laundered and allegedly embezzled, with a substantial portion subsequently withdrawn in cash.
“EACC investigations established that KES 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,” the commission said.
Investigators also established financial links between programme officials and some of the private entities that received the funds, which EACC said appeared to contravene public financial management and accountability requirements.
The commission said it completed investigations and forwarded the inquiry file to the Director of Public Prosecutions, who approved the prosecution of 20 public officials, companies and company directors.
The suspects face charges including unlawful acquisition of public property, abuse of office, money laundering, acquisition of proceeds of crime and uttering false documents, among other offences.
Among those arrested are PROFIT Programme Coordinator John Ngure Kabutha, National Treasury Head of Accounting Unit Namwel Moturi Motanya, and Senior Accountant John Maina Muriithi.
The other suspects are business owners and directors Gladys Juliet Oroni, Brian Kiprop Chepkarat, Ian Kwemoi Chepkarat, Josephat Kamau Kamoshe, James Omwodo Ndai and Jimmy Carter Odoyo Osodo.
The nine are expected to be arraigned before the Milimani Law Courts on Wednesday, August 19, 2026.
EACC has also directed 11 other suspects to immediately present themselves at its Integrity Centre in Nairobi or the nearest EACC office for processing.
The commission said it would pursue recovery and forfeiture of public funds and assets established to have been acquired through corrupt conduct or other unlawful means.
The arrests come after earlier EACC investigations into the PROFIT programme, which was designed to expand access to financial services for rural households and smallholder farmers.
IFAD describes PROFIT as a programme aimed at improving access to innovative financial products and increasing incomes among poor rural households.
