In what is seen as grand corruption fusing the National Treasury officials and business persons, the government lost over KES 1.5 billion released by an international donor to finance poverty alleviation.
According to a court filing by the director of public prosecutions senior national treasury officials authorised large payments to individual companies through their director.
A director of one of the companies had a pseudo name- Gladys Juliet Oroni alias Gladys Juliet Chepkarat.
She operated three companies - Mawindo Enterprises, Greenbasil Agencies and Brigs Agencies.
Other companies and their directors netted by the anti-graft agency-EACC- are El Konyitta Technologies, Kemula Agencies, Shilal Supplies, Ednas Agencies, Prozep Technologies, Stereen Agencies, Dangzerina Enterprises, Ritashell Enterprises, Maxtor Supplies, Craybar Distributors, Kaplan Logistics Limited and Jarods Agency Limited.
Through these, monies exited public coffers.
As a consequence, nine senior officials from the National Treasury and the entrepreneurs were charged over the KES 1.5 billion rip off.
The monies released by the International Fund for Agricultural Development (IFAD) and the Government was meant for boosting incomes for persons engaging in income projects and agricultural activities in rural areas.
State prosecutor Alex Akula told Milimani Anti-Corruption Court Magistrate Rose Ndombi on August 19, 2026, that the senior Treasury employees engaged in a complex web of fraud which led to the loss of KES 1.5 billion from the public coffers.
The lost monies, the magistrate heard, were released by the National Treasury through the Programme for Rural Outreach of Financial Innovations and Technologies (PROFIT).
The programme was aimed at enhancing incomes of the rural folk and reducing poverty at the grass root levels.
Those arraigned were Programme Coordinator at the National Treasury- John Ngure Kabutha, Nemwel Moturi Motanya, John Maina Muriithi, Gladys Juliet Oroni alias Gladys Juliet Chepkarat also trading as Mawindo Enterprises, Brian Kiprop Chepkarat and Ian Kwemoi Chepkarat.
Others charged included James Omwondo, Jimmy Carter Odoyo Odongo and Josphat Kamau Kamoshe.
They all denied 121 charges of abuse of office, unlawful acquisition of public funds, money laundering and acquisition of proceeds of crime.
The Director of Public Prosecutions (DPP) through a prosecuting counsel Alex Akula did not oppose the release of the accused persons on bond.
However, Mr Akula urged the magistrate to impose stringent bail terms saying a large sum of KES 1.5 billion was lost through the complicated web of fraud.
The court heard that the public lost the colossal sum through alleged collusion of the civil servants.
“I urge this court to pronounce stringent bond terms as the accused are charged under the ACECA rules which imposes severe penalties to the offenders upon conviction,” Mr Akula submitted.
The prosecutor also applied to have a warrant of arrest issued against 17 persons who did not attend court or surrender to the EACC offices for processing.
“I apply for a warrant of arrest against 17 accused persons who did not attend court or surrender to EACC offices even after being asked to do so,” Mr Akula urged.
Ms Ndombi issued the warrants of arrest against 17 suspects.
She directed police to arrest and arraign them in court on September 2, 2026, for plea taking.
“I hereby issue a warrant of arrest against 17 suspects who did not attend court as directed by EACC officers,” Ms Ndombi ordered
Among those to be arrested and arraigned is a National Treasury Accountant Billy Otieno Obango alias Billy Obango whom the court heard was he corruptly received a benefit of KES 799,844,648.40.
The alleged millions were allegedly authorized to him (Billy) by one Mr Kabutha, a Programmes Coordinator at the National Treasury.
The prosecution stated that within a span of three years- between June 1, 2019, and June 30, 2022, Mr Kabutha being a Programmes coordinator - Programme for Rural Outreach of Financial Innovation and Technology (PROFIT) authorized a payment of KES 799,844,648.40 to Billy Otieno Obango through cheques from the Cooperative Bank where the programme held an account.
Ms Ndombi directed police to arraign the 17 suspects out of the 36 ordered to be prosecuted on September 2, 2026.
The nine who appeared in court were represented by advocates Edward Oonge, Martina Swiga, Danstan Omari and Michael Were.
Mr Oonge presented application to have all the suspects released on bond asking the court to take judicial notice that some of the suspects are senior citizens having exited civil service.
The lawyer urged that the court consider releasing the suspects on reasonable bond terms.
“I urge this court to consider releasing Mr Motanya- who is a former Senior Assistant Accountant General the National Treasury with reasonable bond. He only faces one count,” Mr Oonge urged.
He added that Mr Motanya did not benefit from the funds he authorized.
Motanya denied that between August 1 and October 26, 2022, he allegedly abused his office to improperly confer a benefit to Billy Otieno Obango alias Billy Obango and Gladys Juliet Oroni alias Gladys Juliet Chepkarat.
The charge claims Mr Motanya improperly authorised the creation of an IFMIS number 403754 for KCB Bank account number 13042541217 in the name of Programme for Rural Outreach of Financial Innovation and Technology (PROFIT) leading to a loss of KES 175,300,640.
Mr Oonge teaming up with Ms Swiga said Mr Motanya has since retired and has no income.
Ms Swiga said the accused has serious health challenge which require constant medical attention.
All the other defense lawyers echoed Ms Swiga saying “their clients are battling underlying medical conditions and therefore huge bond terms would cripple them as they have no incomes.”
Mr Were said the law presumes the accused to be innocent until proven otherwise after testimony is presented.
In a rejoinder Mr Akula urged the court not to be swayed by the moving submissions by the defence lawyers but consider public interest and the huge loss caused by the actions of the accused persons.
Mr Akula sought 30 days to compile the witness statements and exhibits saying they are voluminous.
In her ruling Ms Ndombi said the court has considered the large huge sums of public money that was lost through PROFIT.
She said public interests demands that the court to consider the penalty to be imposed upon conviction.
Ms Ndombi ordered Mr Kabutha to deposit a bond of KES 10 million with one surety of similar amount with an alternative cash bail of KES 5 million and one conduct person.
Mr Motanya was given a bond of KES 5 million with an alternative cash bail of KES 2 million.
Mr John Maina Muriithi was released on bond of KES 5 million with an alternative cash bail of KES 2 million.
Gladys Juliet Oroni alias Gladys Juliet Chepkarat was granted bond of KES 20 million with an alternative bond of KES 10 million.
Brian Kiprop Chepkarat was released o bond of KES 10 million with an alternative cash bail of KES 5 million.
Ian Kwemoi Chepkarat was released on bond of KES 3 million with an alternative cash bail of KES 2 million.
Odoyo Osodo was freed on a bond of KES 1 million with an alternative cash bail of KES 300,000 while Mr Kamoshe was released on bond of KES 2 million with an alternative cash bail of KES 1 million.
According to the charge sheet Gladys operated several companies-Mawindo Enterpries, Brigs Agencies, Greenbasil Agencies through which hundreds of millions were siphoned through.
Her company Mawindo Enterprises received KES 73,812,668 between June 1, 2019, and June 2022.
She also received KES 41,147,336 and another KES 71,425,999.95.
Mr Kabutha denied authorising payment of KES 32,507,600 to Shadrack Amongo Ngaira trading as Ngasha Agencies between June 2019 and 2022.
Kiprop, Kwemoi and their company 020 Investments Limited received KES 79,977,334 between June 1, 2019 and June 30, 2022.
