Four employees of Kaluworks Limited were arraigned over an alleged internal fraud and money laundering scheme that saw the company lose more than Sh31 million.
The suspects — Esbon Wamathu Wandugo, Albert Kiptanui Kosgei, Mary Wamoyo Muriuki and Godfrey Otieno Owino — are accused of orchestrating a calculated plan to siphon and launder Sh31,053,520 from their employer between January 2024 and September 2025 within Makadara, Nairobi County.
According to investigators, the four, who were entrusted with fiduciary responsibilities, allegedly abused their positions in a sustained scheme that manipulated the company’s financial systems for personal gain.
Detectives established that deception was central to the execution of the fraud.
The accused are reported to have deliberately falsified accounting records by omitting critical material particulars from key financial documents, including payment vouchers, cashbooks and ledger accounts.
Through these omissions and alterations, investigators say they misrepresented the company’s true financial position, effectively concealing unauthorized withdrawals and fraudulent transactions.
The elaborate scheme allegedly enabled the suspects to siphon millions of shillings over an extended period without immediate detection, causing substantial financial loss to the firm.
Further investigations revealed that after fraudulently obtaining the funds, the suspects allegedly deposited the money into third-party accounts as well as personal bank accounts.
Authorities believe this was a deliberate move to conceal and disguise the nature, source, ownership and movement of the illicit proceeds — a classic layering tactic commonly associated with money laundering.
The case highlights the critical importance of strong internal controls, forensic accounting and vigilant corporate governance structures in safeguarding institutions from financial crimes.
The four suspects have been charged with money laundering contrary to Section 3(a) as read with Section 16 of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) No. 9 of 2009, acquisition of proceeds of crime contrary to Section 4(a) as read with Section 16(1)(a) of POCAMLA, Chapter 59A Laws of Kenyan and stealing by servant contrary to Section 281 of the Penal Code.
The group also faced false accounting by servant contrary to Section 330 of the Penal Code.
They were released on a cash bail of Sh500,000 each with one surety of a similar amount or, in the alternative, a bond of Sh3 million.
The matter is scheduled for mention on March 5, 2026, for pretrial directions.
As the judicial process unfolds, the case serves as a stark reminder that financial crimes — no matter how sophisticated — leave trails that can be uncovered through diligent investigation and enforcement.
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