Kenyan detectives are probing a Chinese national suspected of orchestrating a massive banking fraud that saw more than Ksh170 million meant for government construction projects land in an unauthorised account.
According to files presented to the Directorate of Criminal Investigations (DCI) Banking Fraud Unit, the man allegedly forged documents to falsely present himself as a company director. With these fake papers, he reportedly opened an illegitimate bank account and redirected payments intended for the firm.
Documents seen by Kenyans.co.ke indicate that the suspect used fabricated board resolutions and counterfeit authorization letters to grant himself official powers within the company.
Using those forged credentials, he registered a new bank account in the firm’s name and began receiving money from state construction contracts. This account was entirely different from the one approved by the genuine directors.
The fraudulent operation was uncovered after internal auditors noticed discrepancies in the firm’s financial reports. Payments from government bodies—including the Kenya Rural Roads Authority (KeRRA)—were going to an unfamiliar account, raising red flags.
Investigators believe the fraud was carried out around 2020, during the COVID-19 lockdown period. At the time, legitimate directors of the company were stuck overseas due to travel restrictions and could not fly to Kenya.
The suspect is believed to have taken advantage of their absence to activate the fake account and start rerouting the funds.
A forensic audit later confirmed that the signatures used on the account opening forms and transactional paperwork did not match those of the actual directors. The report also showed that a large portion of the money intended for infrastructure projects was misused or could not be accounted for.
One company director has already recorded a statement with the DCI, distancing himself from the matter. He said no board meeting ever approved a second bank account and insisted that all official payments from government agencies were supposed to pass through the company’s registered banking channels.
He added that he only learned about the fake account after auditors raised alarms about suspicious withdrawals.
In his statement, he also warned that his identity might have been misused and asked investigators to move quickly to bring the culprits to justice.
Even as the investigation deepens, the suspect has launched a counterclaim at the High Court in Nairobi.
He is demanding compensation worth millions of shillings, arguing that the money represents unpaid salary and personal funds he allegedly spent on the company over several years.
Through his legal team, he claims the construction firm was winding up its Kenyan operations and shifting abroad, meaning he might never recover his supposed dues if they are not settled through the courts.
The case is scheduled to return to court on October 29, when further directions will be issued. In the meantime, the court has ordered the freezing of the disputed bank account to prevent any more withdrawals while investigations continue.
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