Ten people and organizations connected to the improper disbursement of Ksh52 million from Kilifi County’s budget have received a collective 75-year prison sentence following their conviction in the Anti-Corruption Court on fraud and related charges.
During a judgment delivered on Tuesday, June 2, the Malindi Law Court pronounced the ten individuals guilty on various charges, such as unauthorized expenditure of public funds, forgery, money laundering, and conspiracy to engage in economic crimes.
The court’s decision included fines amounting to over Ksh198 million for those convicted, in addition to cumulative jail terms surpassing 75 years for the individual defendants.
The court’s findings revealed that senior financial and accounting personnel exploited the Integrated Financial Management Information System (IFMIS) to authorize payments to six private enterprises for commodities and services that were never provided.
The allegations originated in 2016, when county officials and their alleged collaborators are said to have perpetrated the fraudulent acts prior to the commencement of investigations.
Probes conducted by the Ethics and Anti-Corruption Commission (EACC) determined that roughly Ksh51.5 million was improperly distributed.
This led the Central Bank of Kenya (CBK) to freeze certain funds, although investigators confirmed that part of the money had already been removed from banking facilities in Nairobi and other areas.
County personnel associated with the plot were initially brought before the court in 2018, subsequently being freed on a Ksh5 million security bond as the inquiry advanced.
Following the investigative phase, the trial formally commenced in July 2024, when primary state witnesses provided their testimonies.
The prosecution demonstrated that six private organizations functioned as conduits to supply phantom goods and services, with payments channelled through these entities.
Throughout the legal proceedings, witness accounts directly connected the illicit movement of funds from Kilifi’s accounts to businesses associated with prominent political figures and their representatives.
Furthermore, courtroom declarations during the trial indicated that a former IFMIS coordinator and senior county accounting staff altered system credentials to evade normal authorization protocols.
They executed illicit electronic fund transfers maintained at the CBK to the six fictitious private entities.