The United Nations has launched an internal audit into one of its programmes in Kenya after investigations uncovered the alleged theft of Sh1.55 billion by senior National Treasury officials. The funds were meant for the Program for Rural Outreach of Financial Innovations and Technologies (PROFIT), a rural development initiative jointly financed by the Kenyan government and the International Fund for Agricultural Development (IFAD), a specialized UN agency.
The move follows investigations by the Ethics and Anti-Corruption Commission (EACC), which allege that officials exploited weak financial controls to divert public funds for personal gain. IFAD said it has referred the matter to its Office of Audit and Oversight (AUO) and the Independent Office of Evaluation (IOE), reiterating its zero-tolerance policy on fraud and corruption. The agency noted, however, that the alleged misappropriation occurred after the PROFIT program officially ended in 2019, when its oversight role had ceased.
According to court documents filed by the EACC, a former accountant attached to the program allegedly withdrew Sh799.8 million in cash, while other funds were channeled through fraudulent transactions and used to acquire residential and commercial properties in Nairobi, Machakos and Uasin Gishu counties. The High Court has since issued preservation orders freezing the assets and bank accounts linked to the suspects as the recovery case proceeds.
Among those named in the court filings are former PROFIT accountant Billy Otieno Obango, National Treasury officials Gladys Julliet Chepkarat, John Maina Muriithi, Nemwel Moturi Mutonya, Lilian Wanjiku Dishon, George Kihara and Susan Warukira, alongside several associates and companies allegedly used to receive the funds. The allegations remain before the court, and the accused are yet to file their responses.
Investigators claim that Sh206 million in residual program funds was transferred to the Rural Kenya Financial Inclusion Facility (RK-FINFA) account before a further Sh1.379 billion was released by the Treasury into the PROFIT account. Of that amount, Sh579.3 million was allegedly transferred to various entities, while nearly Sh800 million was withdrawn in cash. The EACC also alleges that Sh81.4 million was channeled to a company linked to one of the suspects and that a fake PROFIT bank account was opened at KCB in 2022 using forged documents to receive an additional Sh175.3 million from the Treasury.
The anti-graft agency further claims the fraudulent payments were supported by fake vouchers and forged funding requests purporting to originate from IFAD, despite the donor having already closed the program.
The PROFIT program, launched in 2010 and concluded in 2019, received total funding of approximately Sh4 billion, with IFAD contributing about Sh3.93 billion and the Kenyan government providing Sh72.7 million. Beyond PROFIT, IFAD has committed more than Sh75 billion to 21 development projects in Kenya and continues to finance programs focused on agriculture, food security, climate resilience and fertiliser imports through concessional loans.
