EACC Recovers Sh67 Million in Landmark Treasury Fraud Case

The Ethics and Anti-Corruption Commission (EACC) has achieved a significant legal victory with the recovery of over Sh67 million fraudulently acquired by a senior official at the National Treasury and Planning. The High Court’s Anti-Corruption and Economic Crimes Division, presided over by Justice Musyoki, ruled that Faith Jematia Kiptis must repay the funds illegally obtained through unauthorized allowances.

Kiptis was found to have received public money under the guise of extraneous, facilitation, entertainment, taskforce, and other undefined allowances—payments that violated public finance regulations and government policy. The court directed her to refund Sh67.7 million, including Sh2.4 million and Sh6.3 million already frozen in her Equity and KCB bank accounts respectively, and to pay interest on the amount until full recovery. She was also ordered to bear the legal costs of the suit.

EACC investigations revealed that between January 2020 and June 2022, Kiptis benefitted from multiple, overlapping payments that lacked approval from the Salaries and Remuneration Commission (SRC), were not aligned with her job group, and were unsupported by official government circulars or procedure manuals.

Key evidence presented in court showed that these payments contravened SRC guidelines, particularly a 2015 advisory and a 2021 circular that explicitly barred such unauthorized allowances. The court reaffirmed the binding nature of SRC advisories under Article 230 of the Constitution, noting that Kiptis knowingly engaged in the fraudulent scheme, enriching herself at public expense.

This case forms part of a broader effort by EACC to claw back misappropriated public funds. So far, the Commission has recovered Sh174 million from National Treasury officials through both court rulings and Alternative Dispute Resolution (ADR) channels, signaling a continued crackdown on corruption within government ranks.

The judgment underscores the importance of adherence to established public finance protocols and affirms the judiciary’s role in upholding accountability in the public service.

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