NAIROBI, Kenya — Four suspects have been arrested and arraigned in court following a meticulous investigation into a sophisticated internal fraud scheme that saw Kaluworks Limited lose over Sh31 million.
The suspects, Esbon Wamathu Wandugo, Albert Kiptanui Kosgei, Mary Wamoyo Muriuki, and Godfrey Otieno Owino, allegedly orchestrated the fraud between January 2024 and September 2025 within Makadara, Nairobi County.
Investigators say the quartet, all employees with fiduciary responsibilities, deliberately manipulated the company’s financial systems for personal gain.
Elaborate Fraud Scheme
Detectives reported that the suspects falsified accounting records by omitting key details from payment vouchers, cashbooks, and ledger accounts.
These deliberate alterations misrepresented the company’s true financial position, effectively masking unauthorized withdrawals and fraudulent transactions.
Further investigations revealed that after obtaining the funds, the suspects concealed and laundered the money by transferring it into third-party and personal bank accounts.
Investigators believe these actions were part of a classic layering tactic to obscure the origin, ownership, and movement of the stolen funds.
“The unraveling of this scheme highlights the importance of strong internal controls, forensic accounting, and corporate governance vigilance,” said a senior detective involved in the investigation.
Four Arraigned Over Ksh. 31 Million Corporate Fraud and Money LaunderingFour suspects have been arrested and arraigned in court following a painstaking investigation into a sophisticated internal fraud scheme that saw a company lose over Ksh. 31 million.On diverse dates
Court Proceedings
The four were arraigned on charges including:
- Money laundering under section 3(a) as read with section 16 of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) No. 9 of 2009
- Acquisition of proceeds of crime under section 4(a) read with section 16(1)(a) of POCAMLA
- Stealing by servant contrary to section 281 of the Penal Code
- False accounting by servant contrary to section 330 of the Penal Code
They were released on cash bail of Sh500,000 and one surety of a similar amount, or an alternative bond of Sh3 million.
The case is scheduled for pretrial mention on March 5, 2026.
Investigators warn that economic crimes, particularly by employees in positions of trust, can destabilize businesses and threaten livelihoods.
“This case is a reminder that no matter how complex or prolonged financial crimes may be, they leave trails that can be uncovered,” said a senior official.
