For nearly six years, Nairobi City County became a playground for a sophisticated fraud scheme that saw over Sh407 million siphoned off through fake contracts, ghost deliveries, and complicit county officials.
According to the Ethics and Anti-Corruption Commission (EACC), the fraudulent payments were made to 14 unqualified business entities between the 2016/2017 and 2021/2022 financial years, without a single verified supply to the county.
In fresh filings before the High Court, the anti-graft body has detailed a web of deceit involving non-existent deliveries, falsified procurement documents, and questionable approvals that were rubber-stamped by senior officials. These include procurement directors, department heads, and finance officers, all accused of colluding with shadowy firms to loot public funds.
“Investigations revealed that senior county officials approved irregular payments amounting to Sh407,926,503.20 for no deliveries made to the county,” EACC said.
Of the total amount, Sh297 million was processed through the Integrated Financial Management Information System (IFMIS), while another Sh109 million was paid out via cheques.
Among the biggest beneficiaries of this scheme was Petrim Investments, which allegedly pocketed Sh65 million, followed closely by Mipe Enterprises, Jemishley Construction, and Ossiezeys Enterprises — most of which were not pre-qualified to transact with the government.
One of the most alarming revelations is the alleged Sh5 million bribe paid to a procurement officer to facilitate one of the fictitious deals. In another instance, firms registered just months before receiving county tenders were awarded multi-million-shilling contracts without competitive bidding.
Prominent individuals in the racket include:
- Richard Mogoko (Procurement Director) – Approved Sh101 million
- Joseph Gathiaka (Chief Officer) – Sanctioned Sh152.8 million
- Mohamed Abdirahman – Linked to approvals worth Sh135.8 million
- Joyce Muniu – Involved in Sh69.4 million payments
- Peter Ingwe, Joel Ngui Muli, Martha Wambugu, and Jeremy Kimathi Muiriria, among others, also feature in the list of suspects
One businesswoman, Mary Wanjiku Mwangi, is said to have operated at least two companies — Keywharf Investments and Maymill Enterprises — that received a combined Sh69 million for undelivered goods.
The EACC further noted that many of the implicated firms share directors, physical addresses, and bank accounts, a red flag pointing to a coordinated laundering operation designed to mask the true beneficiaries of the stolen money.
The anti-graft agency is now seeking to recover the public funds and freeze the assets of all suspects involved. The agency is also pushing for a permanent ban on the individuals and companies from holding public office or engaging in future business with government agencies.
As the court process begins, Kenyans are watching closely to see whether this case will mark a turning point in the war on corruption, or if it will become another statistic in the growing list of unresolved graft scandals.