EACC Recovers Ksh39 Million From Treasury Officials Over Illegal Allowances
A major corruption scandal at Kenya’s National Treasury has come to light after the High Court ordered two government officials to refund Ksh39.1 million that they had unlawfully received through irregular allowances and perks.
The court established that the two officials had used outdated, revoked, and unauthorized government circulars to award themselves extra payments.
These circulars, issued by the National Treasury and the Salaries and Remuneration Commission (SRC), provide essential rules on which allowances public officers are entitled to and which are not permitted.
However, the officials manipulated the system by relying on obsolete and duplicated circulars that had long been nullified. This allowed them to sidestep proper government procedures and obtain multiple financial benefits without required authorization.
According to the Ethics and Anti-Corruption Commission (EACC), the officials deliberately engineered a scheme where they received overlapping allowances under various classifications such as task force allowances, extraneous duties, entertainment, and facilitation perks – none of which had the approval of the SRC.
On Thursday, June 4, Lady Justice Lucy Mwihaki of the Anti-Corruption and Economic Crimes Division of the High Court in Nairobi ruled that the entire amount acquired illegally must be refunded.
The court confirmed that the two officials – one male and one female – were guilty of participating in a fraudulent plan that violated constitutional provisions and enriched themselves unjustly using public funds.
The male official was ordered to return a total of Ksh20,318,000. Of this, Ksh11,078,601 had already been frozen in his bank account by the EACC.
He will be required to pay the remaining Ksh9,239,398.17 in cash. Similarly, the female official was directed to refund Ksh18,862,000, with Ksh8,953,988.74 already frozen in her account. She must pay the remaining Ksh9,908,011.26 in cash.
This case was triggered in July 2022 after the EACC received several complaints about suspected misuse of public funds at the National Treasury.
Investigations later uncovered that between January 2020 and June 2022, the two officers awarded themselves repeated and overlapping allowances, none of which were cleared or endorsed by the SRC.
The High Court ruled that the officials’ actions directly violated guidelines provided by the SRC, which under Article 230 of Kenya’s Constitution, are binding on all public institutions. The court found that the two knowingly defied these rules and took part in a dishonest scheme designed to drain taxpayer funds.
The EACC welcomed the court’s decision, describing it as a critical victory in the fight against corruption and a firm step toward holding public servants accountable and recovering stolen government resources.
The ruling underscores the importance of upholding transparency and lawful management of public finances in government institutions.
A major corruption scandal at Kenya’s National Treasury has come to light after the High Court ordered two government officials to refund Ksh39.1 million that they had unlawfully received through irregular allowances and perks.
The court established that the two officials had used outdated, revoked, and unauthorized government circulars to award themselves extra payments.
These circulars, issued by the National Treasury and the Salaries and Remuneration Commission (SRC), provide essential rules on which allowances public officers are entitled to and which are not permitted.
However, the officials manipulated the system by relying on obsolete and duplicated circulars that had long been nullified. This allowed them to sidestep proper government procedures and obtain multiple financial benefits without required authorization.
According to the Ethics and Anti-Corruption Commission (EACC), the officials deliberately engineered a scheme where they received overlapping allowances under various classifications such as task force allowances, extraneous duties, entertainment, and facilitation perks – none of which had the approval of the SRC.
On Thursday, June 4, Lady Justice Lucy Mwihaki of the Anti-Corruption and Economic Crimes Division of the High Court in Nairobi ruled that the entire amount acquired illegally must be refunded.
The court confirmed that the two officials – one male and one female – were guilty of participating in a fraudulent plan that violated constitutional provisions and enriched themselves unjustly using public funds.
The male official was ordered to return a total of Ksh20,318,000. Of this, Ksh11,078,601 had already been frozen in his bank account by the EACC.
He will be required to pay the remaining Ksh9,239,398.17 in cash. Similarly, the female official was directed to refund Ksh18,862,000, with Ksh8,953,988.74 already frozen in her account. She must pay the remaining Ksh9,908,011.26 in cash.
This case was triggered in July 2022 after the EACC received several complaints about suspected misuse of public funds at the National Treasury.
Investigations later uncovered that between January 2020 and June 2022, the two officers awarded themselves repeated and overlapping allowances, none of which were cleared or endorsed by the SRC.
The High Court ruled that the officials’ actions directly violated guidelines provided by the SRC, which under Article 230 of Kenya’s Constitution, are binding on all public institutions. The court found that the two knowingly defied these rules and took part in a dishonest scheme designed to drain taxpayer funds.
The EACC welcomed the court’s decision, describing it as a critical victory in the fight against corruption and a firm step toward holding public servants accountable and recovering stolen government resources.
The ruling underscores the importance of upholding transparency and lawful management of public finances in government institutions.
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