How Ksh11.4 Million Cereal Deal Landed Businessman in Court

A businessman has been charged at the Milimani Law Courts with obtaining Ksh11.4 million by false pretences in a disputed cereals deal.

In a statement on Tuesday, October 27, the Office of the Director of Public Prosecutions (ODPP) said Brian Kipruto Koech appeared before the court where he was released on a cash bail of Ksh3 million, with two sureties of a similar amount.

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"The Director of Public Prosecutions (DPP) has today charged Brian Kipruto Koech with obtaining Sh11.4 million by false pretences and two counts related to the alleged acquisition and use of proceeds of crime," the statement read.

The prosecution alleged that Koech committed the offences between January 29 and March 17, 2026, in Nairobi, jointly with other individuals who have not been brought before the court.

"The court heard that Mr. Koech allegedly committed the offences between 29th January and 17th March 2026, in Nairobi County, jointly with others who have not been brought before the court," the statement added.

According to the ODPP, in the first count, Koech is charged with obtaining money by false pretences, contrary to Section 313 of the Penal Code.

According to the charge sheet, he allegedly obtained the money from Abdalla Faraj Abdalla after claiming he could purchase cereals, sell them on Abdalla's behalf and return the proceeds, despite allegedly knowing that the representation was false.

"The particulars of the offence state that between 29th January and 17th March 2026, in Nairobi’s Central Business District, he allegedly obtained Ksh11,408,000 from Abdalla Faraj Abdalla by falsely pretending that he was in a position to buy cereals, sell them on his behalf and return the profits while knowing that is false," the statement further read.

Koech also faced a charge of acquiring proceeds of crime, contrary to Section 4(a), as read with Section 16(1)(a) of the Proceeds of Crime and Anti-Money Laundering Act, No. 9 of 2009.

The prosecution alleged that the money was transferred to his Absa Bank account during the period in question, with the accused allegedly knowing or having reasonable grounds to know that the funds were proceeds of crime.

"The charge sheet alleges that on diverse dates between 29th January and 17th March 2026, in Nairobi County, Mr. Koech, jointly with others not before the court, received Sh11,408,000 from Mr. Abdalla into his Absa Bank account," the statement noted.

The prosecution further alleged that Koech knew or ought reasonably to have known that the funds he received were proceeds of crime.

Koech is also charged with using proceeds of crime, contrary to Section 4(b), as read with Section 16(1)(a) of the Proceeds of Crime and Anti-Money Laundering Act, No. 9 of 2009.

According to the ODPP, he allegedly used the Ksh11,408,000 held in his Absa Bank account on various dates between January 17 and March 17, 2026, in Nairobi County.

"Mr. Koech also faces a charge of using proceeds of crime, contrary to Section 4(b), as read with Section 16(1)(a) of the Proceeds of Crime and Anti-Money Laundering Act, No. 9 of 2009," the statement read.

The ODPP said the prosecution's case is that the accused knew, or ought reasonably to have known, that the money involved in the transactions was linked to criminal activity.

"The prosecution alleges that, at the time of the acquisition, he knew or ought reasonably to have known that the money was, or formed part of, proceeds of crime," the statement concluded.

Koech has denied all three charges.

This comes days after detectives arrested a man accused of spending Ksh6.7 million that was mistakenly deposited into his bank account following an error during the processing of electronic payments.

In a statement on Sunday, October 25, the Directorate of Criminal Investigations (DCI) said the suspect, Dickson Yiaile Sitei, was apprehended on Saturday, October 24, along Lantana Road in Westlands, Nairobi. 

The agency said detectives from the Banking Fraud Investigation Unit (BFIU) arrested Sitei over allegations that he spent money that had been erroneously credited to his account.

"Detectives from the Banking Fraud Investigation Unit (BFIU) have arrested a suspect accused of brazenly spending over Ksh6.7 million that was mistakenly credited to his bank account," the statement read.

According to the DCI, the incident dates back to November 18, 2025, when a company was processing 74 electronic payments, including rent owed to Sitei for the company's shop in Suswa.

The rent payment amounted to Ksh72,000, but a processing error resulted in an additional Ksh6.7 million intended for another company being deposited into his account.

"But an error during processing led to a monumental blunder: both the rent and a staggering Sh6,744,354 intended for another company found their way into Sitei's bank account," the statement added.

The DCI alleged that the company later sought to recover the money after discovering the error, but Sitei spent the excess funds instead of returning them.

"When the company sought to reclaim its funds, Sitei didn’t just acknowledge the windfall; he allegedly spent the excess cash with no remorse," the statement further read.

The DCI said the decision prompted an investigation by detectives, who subsequently forwarded the case file to the ODPP for review and directions on the charges.

Following a review of the evidence, the ODPP directed that Sitei face charges relating to the intentional withholding of an erroneously delivered payment and money laundering.