Nine arraigned over Kes1.57b PROFIT programme fraud

Suspects in the Kes1.57 billion Rural Outreach of Financial Innovations and Technologies Programme (PROFIT) scandal take plea at the Milimani Anti-Corruption Court, led by first accused John Ngure Kabutha, the programme coordinator.

20:08:2026: Nine suspects have been arraigned at the Milimani Anti-Corruption Court over the embezzlement and fraudulent disbursement of Kes1.57 billion from the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme.

The suspects, arrested by the Ethics and Anti-Corruption Commission (EACC) on Tuesday, pleaded not guilty to various anti-corruption charges yesterday when they appeared before Chief Magistrate Rose Ndombi.

EACC investigations established that Kes1,569,582,338.20 was fraudulently disbursed from the National Treasury Development Account to the PROFIT Programme and subsequently channelled to 23 private entities, comprising 15 business names and eight companies, for goods and services that were never supplied or rendered.

The programme, implemented by the National Treasury with funding from the International Fund for Agricultural Development (IFAD), was intended to facilitate small-scale farmers’ access to affordable financing and operated between the 2013/2014 and 2023/2024 financial years.

Investigators further established that programme officials used false and forged documents to account for the funds and irregularly opened a Kenya Commercial Bank account in the name of the PROFIT Programme. Kes175.3 million was received through the unauthorised account, which was subsequently used to launder and embezzle the funds, with a substantial portion withdrawn in cash.

The investigation also established financial links between programme officials and some of the private entities that received the funds, in apparent breach of public financial management and accountability requirements.

Programme coordinator faces 19 counts

PROFIT Programme Coordinator John Ngure Kabutha faces 19 counts of abuse of office. The court heard that between June 2019 and June 2022, he used his office to improperly confer benefits on various individuals and businesses by authorising payments from the programme’s Cooperative Bank account.

The alleged payments included Kes73.8 million to Gladys Juliet Oroni, trading as Mawindo Enterprises; Kes41.1 million to Oroni’s Brigs Agencies; and Kes71.4 million to her Greenbasil Agencies.

The court further heard that Kabutha authorised Kes32.5 million and Kes3.17 million to Ngasha Agencies, Kes40.1 million to Jarods Agency Limited, Kes6.7 million to Ritasshell Enterprises and Kes66.2 million to Brian Kiprop Chepkarat, trading as EL Konyinta Technologies.

Other payments cited in the charges included Kes6.96 million to Vidi Vici Investment Limited, Kes11.97 million and Kes9.61 million to Kemula Agencies and Shilal Supplies respectively, and Kes8.73 million, Kes41.2 million, Kes2.36 million and Kes49.2 million to businesses operated by James Omwodo Ndai.

Kabutha is also accused of authorising Kes79.98 million to 020 Investments Limited and KSh799.84 million to Billy Otieno Obango.

Kes175.3m unauthorised account

National Treasury officials Nemwel Moturi Motanya, a Senior Assistant Accountant General, and John Maina Muriithi, a Senior Accountant, each face a count of abuse of office.

The court heard that between August and October 2022, the two officials irregularly authorised the creation of an IFMIS number for a KCB account opened in the name of the PROFIT Programme, leading to an alleged loss of Kes175.3 million.

Private entities charged

Several business proprietors and company directors face charges of unlawful acquisition of public property, acquisition of proceeds of crime and money laundering over funds allegedly received from the programme.

Brian Kiprop Chepkarat faces six counts of unlawful acquisition of public property and three counts of acquisition of proceeds of crime. The court heard that he, either as proprietor of EL Konyinta Technologies or jointly with Ian Kwemoi Chepkarat through Vidi Vici Investment Limited and 020 Investments Limited, unlawfully acquired more than Kes125 million for services that were not rendered.

James Omwodo Ndai faces three counts of unlawful acquisition of public property, three counts of acquisition of proceeds of crime and one count of money laundering. The charges relate to more than Kes36 million allegedly received by Prozepp Technology and Steeren Enterprises for services not rendered.

The money-laundering charge states that Ndai transferred Kes5.95 million through Safaricom M-Pesa wallets registered in his name and that of Billy Obango.

Josephat Kamau Kamoshe, director of Blue Dart Agencies Limited, faces charges of unlawful acquisition of public property and acquisition of proceeds of crime over Kes5.3 million allegedly received from the PROFIT Programme for services that were not rendered.

Jimmy Carter Odoyo Osodo, proprietor of Cadnic Investments, faces similar charges over Kes1.31 million allegedly received from the programme.

Oroni faces 26 money-laundering counts

Gladys Juliet Oroni, proprietor of Mawindo Enterprises, Brigs Agencies and Greenbasil Agencies, faces 26 counts of money laundering.

The court heard that between October 2022 and December 2023, Oroni withdrew and transacted funds from the disputed KCB account while knowing or having reason to believe that the money constituted proceeds of crime.

The transactions included Kes23.4 million transferred to 020 Investments Limited, Kes8.08 million to Vidi Vici Investment Limited, Kes7.76 million to EL Konyinta Technologies, Kes9.76 million to Kemula Agencies and Kes3.39 million to Shilal Supplies.

Other transfers involved Prozepp Technology, Ednas Agencies, Steeren Enterprises, Cadnic Investments, Ritasshell Enterprises, Maxtor Supplies, Graybar Distributors, Kaplan Logistics Limited and Blue Dart Agencies.

The court also heard that Oroni, through her businesses, transacted Kes13 million and Kes14.05 million through an advocates’ client account for the purchase of several parcels of land.

Released on bond

All nine accused pleaded not guilty and were admitted to various bond and cash-bail terms.

Kabutha was granted a Kes10 million bond or Kes5 million cash bail, while Oroni was granted a Kes20 million bond or Kes10 million cash bail.

Chepkarat was granted a Kes10 million bond or Kes5 million cash bail. Motanya and Muriithi were each granted Kes5 million bonds or Kes2 million cash bail.

Ian Kwemoi Chepkarat was granted a Kes3 million bond or Kes2 million cash bail, while Ndai was granted a Kes5 million bond or Kes2 million cash bail. Kamoshe was granted a Kes5 million bond or Kes1 million cash bail, while Osodo was granted a Kes1 million bond or KSh300,000 cash bail.

Following completion of its investigations, EACC 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.

The court also issued warrants of arrest for 11 suspects who remain at large, including PROFIT Programme Accountant Billy Otieno Obango and proprietors and directors of several businesses allegedly linked to the disputed transactions.