The Directorate of Criminal Investigations (DCI) has revealed how four employees allegedly orchestrated an internal fraud scheme that saw their employer lose more than Ksh31 million.
In a statement on Monday, February 23, the agency announced that the suspects had been arrested and arraigned in court following investigations into what it described as a sophisticated and prolonged financial crime.
"Four suspects have been arrested and arraigned in court following a painstaking investigation into a sophisticated internal fraud scheme that saw a company lose over Ksh31 million," the statement read.
The DCI identified the four suspects, specified the period of the alleged fraud between January 2024 and September 2025, adding that the offences occurred in Makadara, Nairobi County.
"On diverse dates between January 2024 and September 2025, within Makadara, Nairobi County, Esbon Wamathu Wandugo, Albert Kiptanui Kosgei, Mary Wamoyo Muriuki and Godfrey Otieno Owino, allegedly orchestrated a calculated plan to siphon and launder Ksh31,053,520 from their employer, Kaluworks Limited," the statement added.
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According to investigators, the four suspects were employees entrusted with fiduciary responsibilities and are accused of deliberately abusing their positions over an extended period to manipulate the company’s financial systems for personal gain.
"According to investigations, the suspects, all employees entrusted with fiduciary responsibilities, abused their positions of trust in a deliberate and sustained scheme designed to manipulate the company’s financial systems for personal gain," the statement continued.
Detectives further disclosed that the fraud heavily relied on deception, particularly through the falsification of accounting records and omission of critical details in key financial documents.
"Detectives established that deception was central to the execution of the fraud. The quartet is reported to have willfully falsified accounting records by omitting critical material particulars from key financial documents, including payment vouchers, cashbooks and ledger accounts," the statement further read.
The agency explained that the omissions and alterations distorted the company’s true financial position and concealed unauthorized withdrawals and fraudulent transactions.
"Through these calculated omissions and alterations, they misrepresented the true financial position of the company, effectively masking the unauthorized withdrawals and fraudulent transactions," the statement noted.
Investigators said the scheme was elaborate and sustained, allowing the suspects to drain and launder millions over a long period without immediate detection.
"The elaborate scheme enabled them to drain and launder millions over an extended period without immediate detection, consequently causing the company a colossal financial loss," the statement explained.
The DCI also revealed that after obtaining the funds, the suspects allegedly took steps to conceal the proceeds by depositing the money into third-party and personal bank accounts.
"Further investigations revealed that after fraudulently obtaining the funds, the suspects took additional steps to conceal and disguise the illicit proceeds. The stolen monies were deposited into third-party accounts as well as personal bank accounts, a move investigators believe was intended to obscure the nature, source, ownership and movement of the funds in a classic layering tactic associated with financial crimes and money laundering," the statement noted.
The four suspects have since been arraigned in court to face charges related to money laundering, acquisition of proceeds of crime, stealing by servant, and false accounting by servant.
They were released on a cash bail of Ksh500,000 and one surety of a similar amount or an alternative bond of Ksh3 million.
The matter will be mentioned on March 5, 2026, for pretrial.
This comes days after detectives arrested two suspects after defrauding a United State citizen of Ksh28 million in a fake gold deal.
In a statement on Wednesday, February 18, DCI identified the two suspects as Willis Onyango Wasonga and Mohammed Noor Muhyadhin.
The hawkshaws launched an investigation into the fake gold scheme after Gershonov Oleg filed a report with the Capitol Hill police station on behalf of his American business partner, John Sodipo.
According to the DCI, Oleg first visited Kenya in September 2025 to pursue a gold transaction that never materialized. During the trip, Oleg established contacts with Wasonga, who is the prime suspect.
Sodipo then held talks with Wasonga for the purchase and subsequent chartering of 495 kilograms of gold to Dubai.
“After reaching an agreement, Sodipo deposited the agreed chartering fees into a purported Escrow account under advocate Michael Otieno Owano of MOAC Advocates, with Oleg flying to Kenya to oversee the shipment process,” DCI stated.
The US businessmen only realized they had been scammed after the gold shipment failed to arrive within the agreed timeframe.
Investigations established that the suspects used an elaborate web of deception involving SRK Logistics Limited, a logistics company that allegedly misrepresents its capacity to supply gold.
"Fictitious legal representation agreements were also generated to create the illusion of legitimacy, falsely portraying MOAC Advocate LLP as handling bona fide commercial transactions," DCI stated.
The investigations also revealed that the funds were swiftly moved between company accounts and later transferred overseas.
Wasonga, the prime suspect, presented himself at DCI Headquarters on Friday, February 13, 2026, before he was arraigned at Milimani Law Courts, where he pleaded not guilty and was granted a bond of Ksh1 Million.
His accomplice, Mohammed Noor, was arrested on Tuesday by detectives from DCI’s Operation Support Unit (OSU).
Detectives disclosed that Mohamed, the sole proprietor of Mohazcom Trading, received Ksh28 million into his company’s account at the National Bank of Kenya before wiring the funds overseas.
Mohammed is currently in custody, undergoing processing pending arraignment in court.
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