PROFIT Program Fraud Uncovered
EACC Arrests Nine National Treasury Officials in Sh1.57 Billion PROFIT Program Fraud
Key Points
An unauthorized PROFIT account was opened at Kenya Commercial Bank (KCB) in PROFIT’s name years after the programme’s official account was closed, through which about Sh175 million was received and allegedly laundered and embezzled.
Investigators say the funds were disbursed to 23 private entities, including 15 business names and eight companies, for goods and services that were never supplied or rendered.
The case involves forged National Treasury documents to create the fake PROFIT bank account, as well as fake payment vouchers and forged single-step authorisations used to push through disbursements.
The EACC is pursuing recovery of luxury properties connected to the scheme and has signalled charges for economic crimes, money laundering, abuse of office and acquisition of proceeds of crime, with assets tied to Nairobi, Machakos and Uasin Gishu counties.
Kenya's Ethics and Anti-Corruption Commission has arrested nine suspects — including senior National Treasury officials and business owners — over the alleged theft of Ksh1.57 billion from a government financial inclusion programme, Citizen Digital reported. The money was meant to expand affordable credit for small-scale farmers under the Rural Outreach of Financial Innovations and Technologies, or PROFIT, programme, which was funded by the International Fund for Agricultural Development.
Investigators say the suspects forged Treasury documents, created a fake bank account, and channelled public funds to private companies for goods and services that were never delivered, according to Capital FM. The total funds under scrutiny may exceed Ksh1.87 billion when related corruption and money-laundering are included.
Fake Bank Account Was the Heart of the Scheme
Years after the PROFIT programme's official bank account was closed, suspects allegedly opened a second, unauthorized PROFIT account at Kenya Commercial Bank, Insider Bits reported. About Ksh175 million passed through this fake account. Investigators say the account was opened using forged National Treasury documents and was never sanctioned by the programme or the government.
From there, the scheme grew much larger. Forged payment vouchers and fake single-step authorisations were used to push disbursements through the system, Capital FM reported. In total, about Ksh784.7 million went to 23 private entities — 15 business names and eight registered companies — for goods and services that were never supplied. Another Ksh768.2 million was simply withdrawn in cash.
PROFIT Programme Closed in 2019, Yet Theft Continued
The PROFIT programme officially ended in 2019, but investigators believe the fraud ran well beyond its closure. Streamline Feed reported that the arrests follow a probe into how funds meant to help small farmers access credit were instead diverted to connected private businesses. The case raises serious questions about how post-closure public funds are monitored and protected.
The EACC says internal controls at the National Treasury completely failed. Suspects allegedly abused their positions to approve large disbursements and authorise cash withdrawals without proper oversight, according to Nairobi Leo. The fraud went undetected for years, pointing to deep gaps in how Treasury-linked programmes are audited after they close.
EACC Pursues Luxury Properties Across Three Counties
The EACC is not stopping at the arrests. The commission is now seeking to recover luxury properties connected to the scheme in Nairobi, Machakos and Uasin Gishu counties, Capital FM reported. Suspects face potential charges including economic crimes, money laundering, abuse of office and acquisition of proceeds of crime.
The probe has expanded in scope and scale. Citizen Digital reported that the total amount under investigation could surpass Ksh1.87 billion when wider corruption and money-laundering tied to related public funds are factored in. The EACC has signalled it intends to pursue every asset linked to the alleged scheme.
Nine Suspects in Custody as Investigation Widens
The nine suspects arrested include both senior National Treasury officials and private business owners, according to Insider Bits. Their arrest marks one of the largest single-operation anti-corruption swoops tied to a government development programme in recent years. The EACC has not yet named all the suspects publicly.
The case puts a spotlight on Kenya's broader public financial management challenges. The PROFIT programme was designed to help ordinary farmers — yet the funds allegedly ended up in private hands through a web of forged documents and fake companies, Streamline Feed reported. The EACC says it will push for full prosecution and asset recovery.
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