By Valentine Omondi
A long-running investigation into the alleged misappropriation of Sh1.57 billion from the Programme for Rural Outreach of Financial Innovations and Technologies (PROFIT) has entered a new phase after the Director of Public Prosecutions approved the prosecution of nine suspects, including officials from the National Treasury who were tasked with coordinating the programme.
According to a press statement issued by the Office of the Director of Public Prosecutions on August 18, the DPP reviewed an inquiry file submitted by the Ethics and Anti-Corruption Commission and established sufficient evidence to charge the suspects over the alleged loss of Sh1,569,582,338.20.
PROFIT was a financial inclusion programme under the National Treasury that sought to expand access to financial services and technologies in rural Kenya. The programme was implemented with support from the International Fund for Agricultural Development (IFAD), a United Nations specialised agency focused on rural development and poverty reduction.
The DPP says the suspects face charges including abuse of office, unlawful acquisition of public property, uttering a false document, financial misconduct, acquisition of proceeds of crime and money laundering.
The nine suspects named in the statement include John Ngure Kabutha, the PROFIT Programme Coordinator; Namwel Moturi Motanya, Head of the Accounting Unit at the National Treasury; John Maina Muriithi, a Senior Accountant at the National Treasury; Gladys Juliet, proprietor of Mawindo Enterprises; Brian Kiprop, proprietor of El Konyinta Technologies; Ian Kwemoi, Director of o2o Investments Limited and Vidi Vici Limited; Josphat Kamau, Director of Blue Dart Agencies Limited; James Omwodo, proprietor of Ednas Agencies; and Jimy Carter Odoyo, proprietor of Cadnic Investments.
The prosecution decision comes after an investigation that had already moved into the courts, with EACC pursuing the alleged loss of funds and seeking preservation of assets linked to the case.
From a rural finance programme to a corruption investigation
PROFIT was established to address financial exclusion in rural Kenya, particularly by improving access to financial services for rural communities and supporting economic activities such as agriculture.
The programme, which was jointly supported by the Kenyan Government and IFAD, operated for several years before officially coming to an end on December 31, 2019.
It is the events surrounding the programme’s finances, including transactions investigated after its closure, that subsequently drew the attention of anti-corruption investigators.
EACC’s investigations placed the alleged loss at more than Sh1.55 billion and resulted in court proceedings seeking to preserve funds and property allegedly connected to the suspected financial misconduct.
Reports based on EACC court documents indicated that investigators were examining transactions involving funds allegedly released to accounts associated with PROFIT after the programme had ended.
The investigation also traced alleged proceeds into private entities and properties, leading EACC to pursue preservation orders as part of efforts to safeguard assets pending recovery proceedings.
These proceedings had already placed the financial affairs of PROFIT under judicial scrutiny before the DPP made the latest decision.
The investigation had been building before the DPP’s decision
The August 18 announcement therefore represents a new stage rather than the beginning of the case.
EACC had previously taken several people linked to the investigation before the anti-corruption courts. A Milimani Magistrates’ Court cause list from November 2024 included EACC matters involving individuals who later featured in the PROFIT investigation.
The commission subsequently pursued asset preservation proceedings as investigators sought to establish where the alleged proceeds had gone.
The case also attracted attention from IFAD, which said it had initiated internal investigations after becoming aware of the allegations contained in EACC’s court filings.
The development partner noted that the alleged misuse of funds occurred after PROFIT had closed in 2019, when its direct oversight of the programme had ended.
The DPP’s latest decision now brings the criminal aspect of the matter into sharper focus.
The suspects will be required to answer to the charges before a court of competent jurisdiction, where the prosecution will have to prove the allegations contained in the EACC inquiry file.
The DPP has also directed that the companies and businesses implicated in the inquiry be charged.
For a programme established to expand financial opportunities for rural communities, the case has evolved into a major accountability test involving public officials, private businesses and more than Sh1.5 billion in alleged misappropriation.
The August 18 decision means the long-running PROFIT investigation has now moved from the investigative and asset recovery stages to the criminal prosecution stage.
The court will ultimately determine whether the allegations against the nine suspects are proven.
