Sh1.5 billion PROFIT fraud scandal widens as accountant and businessman join 13 others in court

Audio reading is not supported on this browser. Thanks for listening. Continue with a related story, or tap the speaker icon on the next page to listen. Related story IFAD‑funded fraud suspect surrenders to EACC, 10 others urged to report Read next Opens a fresh page. Two more suspects have joined a growing corruption case over alleged diversion of Ksh1.5 billion from a rural finance programme, with the number of accused now rising to 15. A Sh1.5 billion alleged fraud at a government-backed rural finance programme has widened, with two more suspects charged at Nairobi's Anti-Corruption Court, pushing the number of accused persons in the sprawling case to 15. Paul Mukasiali Shilaho, a businessman trading as Shilal Supplies and Kemula Agencies, and Billy Otieno Obango, a project accountant at the Programme for Rural Outreach of Financial Innovations and Technologies (PROFIT), appeared before Principal Magistrate Rose Ndombi on Tuesday and denied the charges. According to the Office of the Director of Public Prosecutions (ODPP), Shilaho faces six counts of fraud, while Obango has been charged with 45 counts. The prosecution did not oppose their release on bail or bond but urged the court to consider the seriousness and nature of the alleged offences when determining the terms. Magistrate Ndombi granted Shilaho a Ksh5 million bond with a surety of a similar amount, or Sh1.5 million cash bail. Obango was granted a Ksh15 million bond with a surety of a similar amount, or Ksh4 million cash bail. The two suspects will return to court on November 3, 2026, for pre-trial directions. Their prosecution follows investigations by the Ethics and Anti-Corruption Commission (EACC) into the alleged irregular disbursement of Ksh1.569 billion from the National Treasury Development Account to the PROFIT programme. According to the prosecution, the funds were intended to support small-scale farmers by improving their access to affordable financial services. The International Fund for Agricultural Development (IFAD) funded PROFIT, which operated between the 2013/2014 and 2023/2024 financial years. EACC alleges that part of the funds was diverted to private companies and businesses for goods and services that were never supplied. Investigators further allege that programme officials used false and forged documents to account for the funds. The anti-graft agency has also raised concerns over a PROFIT bank account which it alleges was opened without authorisation and received Ksh175 million. The latest charges follow the prosecution of other suspects in the same investigation. Charles Cheruiyot Maiyo, a director of Kaplan Logistics Ltd, and Auma Ritah Otieno, the proprietor of Ritasshell Enterprises, were charged last month, along with their respective companies. They faced charges including unlawful acquisition of public property, acquisition of proceeds of crime and money laundering. Maiyo and Otieno denied the allegations and were each released on a Ksh1.5 million bond with a surety of a similar amount, or Sh600,000 cash bail. All the accused persons remain presumed innocent unless and until proven guilty by the court. Facebook Twitter/X Instagram TikTok YouTube WhatsApp