Kenya: Achila, Wangari Charged In Sh1.5bn PROFIT Fraud

• Two new individuals, Eric Otieno Achila and Susan Wangari Gathiaka, have been charged in Nairobi's Anti-Corruption Court in connection with the alleged Sh1.569 billion PROFIT Programme fraud.
• Their arraignment brings the total number of suspects facing charges in the case to thirteen.
• The charges against Achila and Wangari relate to the alleged fraudulent disbursement of funds from the National Treasury Development Account.
• Investigations by the Ethics and Anti-Corruption Commission revealed that funds were allegedly channeled to 23 private entities for unsupplied goods and services, alongside the use of false documents and an unauthorized bank account.
• The PROFIT Programme, funded by IFAD and implemented by the National Treasury, aimed to provide financial access for small-scale farmers in rural areas.

This development underscores the Ethics and Anti-Corruption Commission's expanding investigation into the PROFIT Programme, signaling increased scrutiny for individuals and entities involved in the disbursement of public funds in Kenya.

Two additional individuals, Eric Otieno Achila and Susan Wangari Gathiaka, recently faced charges before the Anti-Corruption Court in Nairobi, bringing the total number of accused in the alleged Sh1.569 billion Programme for Rural Outreach of Financial Innovations and Technologies (PROFIT) fraud to thirteen. Mr. Achila, identified as the proprietor of Dangzerina Enterprises, and Ms. Wangari Gathiaka, who owns Maxtor Supplies and Graybar Distributors, both entered pleas of not guilty to the accusations leveled against them on Tuesday. Their arraignment follows their identification by the Ethics and Anti-Corruption Commission (EACC) as part of an expanded investigation into the substantial loss of funds from the PROFIT Programme.

Mr. Achila is contending with three counts, while Ms. Wangari Gathiaka faces four counts. These charges are directly linked to the alleged fraudulent transfer of Sh1.569 billion from the National Treasury Development Account, intended for the PROFIT Programme. During the court proceedings, the prosecution team, comprising Assistant Director of Public Prosecutions Susan Keli, Principal Prosecution Counsel Jeremiah Walusala, and Prosecution Counsel Brian Mulsisa, did not object to the defendants' release on bond. However, they urged Chief Magistrate Harrison Barasa Owima to consider the gravity and scale of the alleged offenses when determining the bond conditions.

Furthermore, the prosecution requested that the court mandate the surrender of passports from both suspects, require them to seek judicial permission for any travel outside the court's jurisdiction, and prohibit them from interfering with witnesses. Chief Magistrate Owima subsequently granted Mr. Achila a bond of Sh1.5 million with a surety of an equivalent amount, or a cash bail option of Sh650,000. Ms. Wangari Gathiaka received similar bond terms, set at Sh1.5 million with a surety of the same value, or a cash bail of Sh700,000. The case is scheduled for a mention on September 2, 2026, to provide an update on the ongoing proceedings.

The PROFIT Programme, central to this extensive fraud investigation, was established with the objective of enhancing access to affordable financing for small-scale farmers and fostering financial innovation and technology within Kenya's rural areas. Implemented by the National Treasury, the initiative received funding from the International Fund for Agricultural Development (IFAD) and operated between the 2013/2014 and 2023/2024 financial years. The current charges stem from EACC investigations into the alleged fraudulent disbursement of Sh1,569,582,338.20 from the National Treasury Development Account to this program.

According to the EACC, a significant portion of these funds was allegedly diverted to 23 private entities, specifically 15 business names and 8 companies, purportedly for goods and services that investigators later determined were never supplied or rendered. The commission's findings also indicate that program officials allegedly utilized false and forged documents to account for the expenditures. A critical discovery by the EACC was the alleged establishment of an unauthorized Kenya Commercial Bank (KCB) account operating under the name of the PROFIT Programme.

This unauthorized KCB account reportedly received Sh175.3 million, which was then allegedly used for money laundering and embezzlement, with a substantial amount subsequently withdrawn in cash. Further court disclosures by the EACC detailed the movement of these funds, revealing that Sh784,732,663.70 was transferred to the 23 implicated companies, while an additional Sh768,209,574.20 was withdrawn in cash from both Co-operative Bank and KCB accounts. The Office of the Director of Public Prosecutions (ODPP) approved the prosecution of this case following an independent review of the investigation file submitted by the EACC, with the decision encompassing 20 public officials, companies, and company directors linked to the alleged scheme.

This development underscores the Ethics and Anti-Corruption Commission's expanding investigation into the PROFIT Programme, signaling increased scrutiny for individuals and entities involved in the disbursement of public funds in Kenya. The recent charges against Achila and Wangari follow the initial arraignment of nine other suspects on August 19, who also denied various charges related to the alleged fraud. Among those previously charged were key figures such as John Ngure Kabutha, the PROFIT Programme Coordinator, and National Treasury Head of Accounting Unit Nemwel Moturi Motanya and Senior Accountant John Maina Muriithi, alongside various business proprietors and company directors accused of illicitly receiving funds from the program.

The accused individuals collectively face a range of serious charges, including unlawful acquisition of public property, abuse of office, money laundering, acquisition of proceeds of crime, and uttering false documents. Before these initial court appearances, the EACC had already directed eleven additional suspects to present themselves for questioning, indicating the wide-reaching nature of the probe into Kenya public funds embezzlement. The ongoing proceedings at the Anti-Corruption Court in Nairobi highlight the concerted efforts by Kenyan authorities to combat corruption and ensure accountability in the management of public resources, particularly within development programs designed to benefit vulnerable populations.

This development signals the expanding scope of the EACC's investigation into the PROFIT Programme fraud, indicating increased scrutiny for individuals and entities involved in public fund disbursement in Kenya. Lawyers should advise clients on heightened compliance risks related to government contracts and financial transactions, particularly concerning money laundering and public property acquisition, as more individuals are being implicated.

Source: Original reporting via news wires