Detectives from the Directorate of Criminal Investigations (DCI) have arrested and arraigned a suspected cybercriminal accused of masterminding a fraud scheme that cost a leading microfinance institution over Ksh11.4 million.
In a statement on Wednesday, February 11, the DCI revealed that the suspect allegedly exploited system vulnerabilities, executed dozens of concealed transactions, and attempted to erase his digital footprints.
"Detectives from the Banking Fraud Investigation Unit (BFIU) have arrested and arraigned cyberfraudster Seth Mwabe Okwanyo, aka Seth Onyango Odhiambo, for orchestrating a fraudulent scheme that siphoned off Ksh11.4 million from a leading microfinance institution," the statement read.
According to the investigative agency, the case was triggered by a formal complaint from the affected financial institution, which flagged suspicious activity within its systems.
"This action follows a formal complaint lodged by the Microfinance institution, detailing a shocking incident that occurred on July 16, 2025. On that day, a total of thirty-eight (38) fraudulent transactions were executed through the institutions System, resulting in a loss of Ksh11,410,165. These transactions circumvented the company's internal visibility and control measures, raising serious concerns about security breaches," the statement added.
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The DCI stated that once the complaint was filed, a specialized team from the Banking Fraud Investigation Unit launched forensic investigations to trace the anomaly and identify those responsible.
"Dedicated investigators immediately sprang into action, uncovering that these thirty-eight transactions were absent from the microfinance institution records yet were flagged as successful to the recipients. This discrepancy indicated that the hackers had deliberately erased both system and database logs to cover their tracks," the statement continued.
Investigators further established that the suspect allegedly gained deeper access to the institution’s digital infrastructure by installing unauthorized software designed to manipulate transaction processes and mask fraudulent activity.
"Further investigation revealed the unauthorised installation of a Java application in the system. With this malicious app, Seth Mwabe Okwanyo was able to manipulate the system to not only steal the funds but also launder them through various accomplices," the statement further read.
The suspect was presented in court where he faced a raft of charges related to cybercrime and financial fraud.
"In court, Seth faced multiple serious charges, including Unauthorised Access to a Computer System, Computer Fraud, and Money Laundering. He entered a plea of not guilty to all twenty counts. The court granted him bail, allowing his release on a bond of Ksh1,500,000 or a cash bail of Ksh500,000," the statement concluded.
The case is slated for mention on March 3, 2026, as authorities continue with their investigations.
This comes weeks after detectives uncovered a recruitment fraud that preyed on unemployed teachers and members of the public seeking jobs with the Teachers Service Commission (TSC).
In a statement on Friday, January 9, the DCI confirmed that arrests were made following an extensive probe into the scheme.
"Detectives attached to the Teachers Service Commission (TSC) have arrested four suspects in Bomet County, over a large-scale fraud scheme involving fake TSC recruitment letters that duped job seekers of more than Ksh40 million.
"The suspects, David Kemei, TSC Director, Konoin Sub-County; Rosebella Chepkemoi Korir, a former Bomet County Woman Representative aspirant; and two teachers Leonard Siele Towett and Mercy Cherotich, were taken into custody after a painstaking probe by detectives," the statement read.
Investigators revealed that the suspects deliberately targeted vulnerable job seekers, demanding large sums of money in return for falsified employment letters.
"Investigations have since revealed that the suspects targeted unemployed teachers and members of the public, demanding hefty payments in exchange for forged appointment letters promising permanent and pensionable employment with the TSC. Many victims reportedly took loans, sold property, or exhausted their savings in pursuit of the promised jobs," the statement added.
According to the DCI, the scam was not limited to one county, with detectives now pursuing leads across multiple regions.
"The fraud network is believed to extend beyond Bomet County to Kericho, Narok, Kisii, and Nyamira, and efforts are ongoing to trace and arrest additional suspects linked to the syndicate," the statement continued.
As such, authorities have urged the public to exercise caution and avoid unofficial recruitment channels.
"The DCI cautions the public to remain vigilant and to verify all recruitment opportunities through official TSC channels. TSC does not charge any fees for employment," the statement further read.
