EACC arrests nine suspects in Ksh1.57 billion PROFIT Programme fraud

The Ethics and Anti-Corruption Commission (EACC) has arrested nine suspects in connection with an alleged Ksh1.57 billion fraud involving the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme. The programme, a National Treasury initiative funded by the International Fund for Agricultural Development (IFAD), was designed to provide affordable financing to small-scale farmers between 2013 and 2024.

Investigations revealed that funds were fraudulently disbursed from the National Treasury Development Account to 23 private entities. Officials allegedly used forged documents and an unauthorized Kenya Commercial Bank account to launder and embezzle money, with significant portions withdrawn in cash. The Director of Public Prosecutions has approved the prosecution of 20 public officials and company directors on charges including money laundering and abuse of office. Among those arrested is the programme coordinator, John Nguge Kabutha.

Separately, the EACC has identified governance weaknesses within Kenya’s co-operative sector. A report presented to the State Department for Co-operatives highlighted loopholes in oversight and internal controls within agencies such as the Sacco Societies Regulatory Authority (SASRA) and New Kenya Co-operative Creameries Limited. The commission is calling for urgent reforms to protect SACCO savings and prevent resource misuse through corruption.