EACC Arrests Nine Over Alleged KSh1.57 Billion PROFIT Programme Fraud

The Ethics and Anti-Corruption Commission (EACC) has arrested nine suspects over the alleged embezzlement and fraudulent disbursement of KSh1,569,582,338.20 under the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme.

The suspects include senior officials at the National Treasury, which implemented the programme with funding from the International Fund for Agricultural Development (IFAD).

The EACC said on Tuesday that its investigations uncovered alleged irregularities in the programme, which was intended to improve access to affordable financing for small-scale farmers.

The programme was implemented between the 2013/2014 and 2023/2024 financial years.

KSh1.57 billion allegedly diverted

According to the anti-corruption agency, approximately KSh1.569 billion was fraudulently transferred from the National Treasury Development Account to the PROFIT Programme before being channelled to private entities.

The funds were allegedly paid to 23 private entities, 15 business names and eight companies for goods and services that investigators say were never supplied or rendered.

“EACC investigations established that Ksh.1.569 billion was fraudulently disbursed from the National Treasury Development Account to the PROFIT Programme and subsequently channelled to 23 private entities, 15 business names and eight companies, for goods and services that were never supplied or rendered,” the commission said.

Investigators also allege that programme officials relied on false and forged documents to account for the money.

EACC alleges unauthorised KCB account

The commission further alleged that officials opened an unauthorised bank account at KCB Bank in the name of the PROFIT Programme.

According to EACC, approximately KSh175 million was deposited into the account before being allegedly laundered and embezzled, with a substantial amount subsequently withdrawn in cash.

EACC CEO Abdi Mohamud said investigators had also established financial links between programme officials and some of the private entities that received the funds.

The commission said the alleged relationships appeared to contravene public financial management and accountability requirements.

11 other persons of interest

In addition to the nine suspects arrested, EACC identified 11 other persons of interest and directed them to present themselves at the commission's offices to assist with ongoing investigations.

The agency said the arrests followed an extensive investigation into the management and disbursement of funds under the PROFIT Programme.

The suspects are expected to face charges including unlawful acquisition of public property, abuse of office, money laundering, acquisition of proceeds of crime and uttering false documents, among other offences.

Funds were intended for small-scale farmers

The PROFIT Programme was established to facilitate access to affordable financial services for small-scale farmers and other rural beneficiaries.

Its implementation involved the National Treasury and funding from IFAD, an international financial institution focused on rural development and poverty reduction.

The allegations raise questions over the management of public and donor funds allocated to programmes intended to support vulnerable rural communities.

EACC said investigations are continuing and that the suspects will be processed in accordance with the law.

The allegations against the suspects have not been proved in court, and they remain innocent unless and until convicted by a competent court.