Milimani Court: Kaberia CHAN Funds Bond Granted in Kenya Case

• Former Sports PS Peter Kirimi Kaberia and five others were released on bond after being charged in connection with the alleged misappropriation of Sh330 million for the 2018 CHAN tournament.
• Kaberia received a Sh3 million bond or Sh1 million cash bail from the Milimani Anti-Corruption Court, while other accused received similar or slightly varied terms.
• The charges include abuse of office, unlawful acquisition of public property, failure to comply with procurement laws, and financial misconduct, with some facing an additional conspiracy charge.
• The EACC investigation focused on a USD15.89 million contract awarded to Auditel Kenya, alleging an advance payment of Sh330 million was lost due to procurement violations and non-delivery of stadium equipment.
• All accused denied the charges, and the case is scheduled for mention on September 15, 2026, with passports ordered to be surrendered.

The EACC's investigation also uncovered that these funds were allegedly moved through multiple entities in a complex, layered transaction, purportedly designed to obscure their origin and channel the proceeds back into local accounts.

Former Principal Secretary for Sports, Peter Kirimi Kaberia, along with five other individuals, has been granted bond by the Milimani Anti-Corruption Court following charges related to the alleged misappropriation of Sh330 million. These funds were designated for Kenya's preparations to host the 2018 Africa Nations Championship (CHAN). Mr. Kaberia, who is one of 16 accused parties in the broader investigation, received a bond of Sh3 million or a cash bail option of Sh1 million.

Similar bond terms were extended to former Senior Principal Finance Officer Stephen Njoroge Muthuma, former Principal Accountant Enock Ondwari Onditi, and former Senior Superintendent Engineer John Kiende Ruga. Company director Anthony Mwangi Kimanthi and Lease Pride Limited also secured their release under the same conditions. Separately, Samuel Mbaa Njoroge, Taxwise Consulting Limited, and Liroma Assurance Services Limited were each granted a Sh2 million bond or Sh600,000 cash bail. All the accused individuals entered pleas of not guilty before Senior Principal Magistrate Isabella Barasa.

Following their appearance and plea-taking, the court mandated that all accused persons surrender their passports within a seven-day period. The Office of the Director of Public Prosecutions (ODPP), represented by Deputy Director Norah Achieng and assisted by Principal Prosecution Counsel Kennedy Panyako and Prosecution Counsel Thelma Nanjaya, did not contest the applications for bond and bail. The next mention date for the case has been scheduled for September 15, 2026.

The charges against the former Sports PS and his co-accused stem from an extensive EACC public procurement investigation into the alleged loss of public funds. The ODPP has outlined 17 counts against the 16 accused individuals and entities. These include serious allegations such as abuse of office charges Kenya, unlawful acquisition of public property, failure to comply with procurement laws, acquisition of proceeds of crime, and financial misconduct.

Notably, eight of the accused, including Mr. Kaberia, Mr. Muthuma, Mr. Onditi, and Mr. Ruga, face an additional charge of conspiracy to commit an economic crime. The core of the Sh330m CHAN funds case revolves around the alleged non-delivery of stadium equipment, which the Ethics and Anti-Corruption Commission (EACC) claims resulted in a significant financial loss to the public. The investigation highlights potential violations of the Kenya Public Procurement and Asset Disposal Act 2015, underscoring the government's aggressive enforcement against corruption in public entities.

The EACC's inquiry focused on a substantial contract valued at USD15.89 million, approximately Sh1.5 billion, awarded in 2017. This contract, granted by the then State Department for Sports Development to Auditel Kenya, a local subsidiary of a Spanish firm, was intended for the supply, installation, testing, and commissioning of critical infrastructure at various national stadia. This included security and access-control systems, audio-visual networks, communications infrastructure, and pitch lighting, all crucial for the 2018 CHAN tournament.

According to EACC findings, an advance payment of USD3.15 million, equivalent to about Sh330 million, was disbursed to Auditel Kenya. However, investigators allege that this contract was executed in direct violation of the Public Procurement and Asset Disposal Act, 2015. The anti-graft agency further claims that the contractor failed to fulfill its contractual obligations, directly leading to the loss of the Sh330 million. The EACC's investigation also uncovered that these funds were allegedly moved through multiple entities in a complex, layered transaction, purportedly designed to obscure their origin and channel the proceeds back into local accounts.

Following the comprehensive EACC public procurement investigation, the inquiry file was submitted to the ODPP, which subsequently approved the prosecution of the implicated former government officials, company directors, and entities. This case underscores the ongoing commitment of anti-corruption bodies to hold public officials and private contractors accountable for financial misconduct and procurement irregularities.

In addition to the current accused, the EACC has issued directives for four other persons of interest to present themselves. These individuals include Harun Komen Chebet, former Director of Administration at the State Department for Sports Development; Marcos Gonzalez Puente, director of Auditel Ingenieria Y Servicios; Kitheka Muema, a former Football Kenya Federation Audit Committee member; and an unnamed automobile business consultant. The progression of this case will be closely watched as it highlights the robust efforts to combat corruption within Kenya's public sector.

This case highlights the ongoing aggressive enforcement by the EACC and ODPP against alleged corruption and procurement irregularities in public entities. Lawyers advising public officials or companies involved in government contracts should review their compliance frameworks, particularly concerning the Public Procurement and Asset Disposal Act, 2015, to mitigate exposure to charges of abuse of office, financial misconduct, and unlawful acquisition of public property.

Source: Original reporting via Capital News