10 convicted in Ksh.51M Kilifi County gov't corruption, money laundering case

Ten individuals and companies have been convicted and sentenced over a Ksh.51 million corruption and money laundering scheme linked to the Kilifi County government.

The convictions stem from the fraudulent transfer of Ksh.51,569,775 in public funds between September 19 and October 7, 2016, to six private companies for goods that were never supplied and services that were never rendered.

According to the Ethics and Anti-Corruption Commission (EACC), county officials irregularly facilitated the payments, resulting in significant losses to the devolved unit.

In a sentencing ruling delivered by Malindi Anti-Corruption Court Magistrate E.K. Usui, the court noted that the offences caused substantial economic loss to Kilifi County and undermined development initiatives aimed at improving residents' welfare.

The court further observed that the proceeds of crime were largely used for personal enrichment and had not been refunded.

The six companies implicated in the scheme are Daima One Enterprises, Zohali Services Limited, Makegra Suppliers Limited, Kilingi Investments Limited, Leadership Edge Associates and Jahazi Investments Company Limited.

While acknowledging that the convicts were first-time offenders and had endured lengthy court proceedings, the court stressed the need for deterrent sentences amid the rising prevalence of corruption and economic crimes in the country.

Among those sentenced, Lucy Wanjugu Kibogo received the heaviest penalty, attracting cumulative fines of Ksh.38.3 million and facing a default prison term of 15 years and six months.

Mary Munyiva Kamau was fined Ksh.26 million with a default sentence of 13 years, while Sarah Wangui Kamau was fined Ksh.17.5 million or serve five years and eight months in prison if she fails to pay.

The court also imposed hefty fines on the convicted companies. Makegra Supplies Limited was fined Ksh.25.7 million, Zohali Services Limited Ksh.24.5 million, Leadership Edge Associates Ksh.18.2 million, Kilingi Investment Company Limited Ksh.15.9 million and Jahazi Investment Company Limited Ksh.15.2 million.

The penalties carry custodial sentences in default of payment, with all sentences ordered to run consecutively.

The convicts have been granted 14 days to lodge an appeal against the judgment.

While welcoming the ruling, the EACC said the judgment reinforces Kenya's commitment to accountability, integrity in public service and the fight against corruption and money laundering.