Sh39M Fraud Case: Treasury Officials Ordered to Refund Millions in Major EACC Win

The Ethics and Anti-Corruption Commission (EACC) has successfully recovered Sh39,180,000 from two National Treasury officials who fraudulently paid themselves illegal and unauthorized allowances. This decisive legal victory follows a detailed investigation and a High Court ruling that is being hailed as a major milestone in Kenya’s ongoing war against corruption.


The Fraud Uncovered

The ruling, delivered on June 4, 2025, by Lady Justice L.M. Njuguna of the Anti-Corruption and Economic Crimes Division of the High Court, found that Mr. Robert Theuri Murage and Ms. Doris Nafula Simiyu knowingly engaged in a fraudulent scheme involving various fictitious and overlapping allowances. These included task force, extraneous, facilitation, entertainment, and other unspecified payments—none of which had been approved by the Salaries and Remuneration Commission (SRC), as required under Article 230 of the Constitution.

The EACC launched investigations in July 2022 after receiving reports of questionable disbursements within the National Treasury. Their probe revealed that between January 2020 and June 2022, the two officials authorized and received multiple payments based on revoked government circulars, fabricated documentation, or no justification at all. According to investigators, the payments were disguised in a way that appeared official but were, in fact, deliberate attempts to siphon public funds for personal gain.


Court Orders Full Refund

Justice Njuguna ordered the full recovery of the misappropriated funds. Mr. Murage was directed to refund Sh20,318,000, of which Sh11,078,601 already frozen in his Equity Bank account will be forfeited to the State. The remaining Sh9,239,398.17 must be repaid in cash. Ms. Simiyu was ordered to return Sh18,862,000, with Sh8,953,988.74 frozen in her National Bank account forfeited, and the balance of Sh9,908,011.26 to be settled in cash.

In her ruling, the judge reaffirmed that all payments to public officers must adhere to guidelines issued by the SRC, stating: “SRC advisories are binding. These illegal allowances were nothing short of theft.” This sets a precedent for other ongoing investigations into questionable payments in the public service.


Public Reaction: Relief, Outrage, and Hope

The ruling has been met with a mixture of relief, anger, and cautious optimism from members of the public. Lucy Njoki, a public school teacher from Kiambu, said: “Every stolen coin affects real lives—our hospitals, our roads, our schools. This is a step in the right direction.” Samuel Mwangi, a taxi driver in Nairobi, added: “Let this be a warning to others feeding off the system. Kenyans are watching.”

Civil society leaders praised the court’s firmness and called for more systemic reforms to ensure such fraud is not repeated. Martha Ndung’u, the Program Director at Kenyans for Accountability, said: “Accountability is back on the table. We expect more action—not just arrests but real recovery.”

Meanwhile, legal experts have weighed in, saying the judgment strengthens the enforceability of SRC’s constitutional mandate. “The use of outdated circulars and ghost authorizations shows a calculated scheme to defraud the public,” said Beatrice Otieno, one of the EACC’s lead investigators.


EACC: More Recoveries on the Way

The EACC says this ruling is just the beginning. Over 200 similar investigations are ongoing across national ministries and county governments, many targeting irregular allowances, ghost workers, and payroll manipulation. EACC CEO Twalib Mbarak said: “The High Court has reaffirmed our mandate. This isn’t the end—it’s just the beginning.” His deputy, Abdi Mohamud, added: “We are sending a message to public officers: you will be found, and you will pay back what you stole.”

This comes at a time when the government is under immense pressure to deliver services amid rising debt, inflation, and widespread unemployment. For ordinary Kenyans, the ruling represents more than just the recovery of funds—it is symbolic of a turning tide in the fight against impunity.


Final Word: Will This Be a Turning Point?

In a country where corruption has long been a roadblock to development, this court victory sends a strong message: no one is above the law. With the economy under strain and millions of Kenyans demanding better services and leadership, recovering even one shilling lost to corruption is a step toward restoring faith in public institutions.

As one user on social media aptly put it: “Finally, the system is working. Let’s keep the pressure “

Do you want to be published? Email info@thedailywhistle.co.ke or Whatsapp 0721930260

Support Our Work:
You can support this publication via M-Pesa Till Number: 6166112.
Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official position of the company.

Leave a Reply