Four suspects have been arrested and arraigned in court following a painstaking investigation into a sophisticated internal fraud scheme that saw a company lose over Ksh. 31 million.
On diverse dates between January 2024 and September 2025, within Makadara, Nairobi County, Esbon Wamathu Wandugo, Albert Kiptanui Kosgei, Mary Wamoyo Muriuki and Godfrey Otieno Owino, allegedly orchestrated a calculated plan to siphon and launder Ksh. 31,053,520 from their employer, Kaluworks Limited.
According to investigations, the suspects, all employees entrusted with fiduciary responsibilities, abused their positions of trust in a deliberate and sustained scheme designed to manipulate the company’s financial systems for personal gain.
Detectives established that deception was central to the execution of the fraud.
The quartet is reported to have willfully falsified accounting records by omitting critical material particulars from key financial documents, including payment vouchers, cashbooks and ledger accounts.
Through these calculated omissions and alterations, they misrepresented the true financial position of the company, effectively masking the unauthorized withdrawals and fraudulent transactions.
The elaborate scheme enabled them to drain and launder millions over an extended period without immediate detection, consequently causing the company a colossal financial loss.
Further investigations revealed that after fraudulently obtaining the funds, the suspects took additional steps to conceal and disguise the illicit proceeds.
The stolen monies were deposited into third-party accounts as well as personal bank accounts, a move investigators believe was intended to obscure the nature, source, ownership and movement of the funds in a classic layering tactic associated with financial crimes and money laundering.
The unraveling of the scheme underscores the importance of strong internal controls, forensic accounting and vigilance in corporate governance structures.
It also sends a clear message that financial crimes, no matter how complex or prolonged, leave trails that can and will be uncovered.
The four have since been arraigned in court to face charges related to Money laundering contrary to section 3(a) as read with section 16 of the Proceeds of Crime and Anti-Money laundering Act (POCAMLA) No. 9 of 2009, Acquisition of proceeds of Crime contrary to Section 4(a) as read with Section 16(1)(a) of the Proceeds Of Crime and Anti-Money Laundering Act (POCAMLA), Chapter 59A Laws of Kenya, Stealing by servant contrary to section 281 of the penal code, and False accounting by servant contrary to section 330 of the penal code.
The suspects were released on a cash bail of Ksh 500,000/- and one surety of a similar amount or an alternative Bond of 3 Million Kenya shillings.
The matter will be mentioned on March 5, 2026 for pretrial.
