The Ethics and Anti-Corruption Commission (EACC) has secured a major legal victory following the conviction of 10 individuals and companies linked to a KES 51 million corruption and money-laundering scheme involving the Kilifi County Government.
In a ruling delivered by Hon. E.K. Usui at the Malindi Anti-Corruption Court, the court sentenced the accused persons after earlier convictions entered on 17 April 2026, noting that the fraudulent transactions resulted in significant loss of public funds intended for development projects in the county.
The court heard that between 19 September and 7 October 2016, officials at the Kilifi County Government irregularly authorized payments for goods and services that were never supplied or rendered, leading to the unlawful transfer of KES 51,569,775 to six private companies involved in the scheme.
The entities implicated in the case included Daima One Enterprises, Zohali Services Limited, Makegra Suppliers Limited, Kilingi Investments Limited, Leadership Edge Associates, and Jahazi Investments Company Limited.
In its judgment, the court observed that the misuse of public resources undermined development efforts aimed at improving service delivery for residents of Kilifi County, adding that the proceeds of the crime were largely used for personal enrichment and had not been recovered.
While considering mitigation, the court noted that the convicts were first-time offenders and family breadwinners who had endured lengthy trial proceedings. However, it emphasized the need for deterrent sentencing given the increasing prevalence of corruption and economic crimes in the country.
The court imposed substantial fines on the accused persons and companies, alongside mandatory penalties equivalent to the benefits derived from the offences. It further directed that custodial sentences would apply in default of payment, with all sentences to run consecutively.
The Ethics and Anti-Corruption Commission welcomed the ruling, terming it a strong affirmation of the judiciary’s commitment to accountability and the fight against corruption and money laundering, particularly within devolved units where procurement-related scandals have remained a persistent challenge.
The conviction is seen as part of ongoing efforts by anti-graft agencies to recover public funds lost through fraudulent schemes and to deter similar offences in county governments across the country.