A suspected cybercriminal was arraigned in court over an elaborate scheme that siphoned Sh11.4 million from a leading microfinance institution.
Detectives from the Banking Fraud Investigation Unit (BFIU) arrested Seth Mwabe Okwanyo, also known as Seth Onyango Odhiambo, in connection with the cyber heist that occurred on July 16, 2025.
According to investigators, a total of 38 fraudulent transactions were executed through the institution’s system on the material day, leading to a loss of Sh11,410,165.
The transactions were reportedly processed successfully to the beneficiaries but were mysteriously missing from the microfinance institution’s official records.
The institution lodged a formal complaint after discovering the discrepancy, raising alarm over what appeared to be a sophisticated breach of its internal systems.
Investigations revealed that the perpetrators allegedly manipulated the system and deliberately erased both system and database logs to conceal their activities. The absence of transaction records within the institution’s internal visibility and control mechanisms pointed to a calculated attempt to bypass security safeguards.
Detectives further established that an unauthorised Java application had been installed within the system infrastructure. Authorities believe the malicious software enabled the suspect to manipulate transaction processes, facilitating the diversion of funds and subsequent laundering through various accomplices.
Okwanyo was presented before court facing 20 counts, including unauthorised access to a computer system, computer fraud, and money laundering.
He pleaded not guilty to all the charges.
The court granted him bail of Sh1.5 million or an alternative cash bail of Sh500,000.
The case is scheduled for mention on March 3, 2026, as investigations continue to unravel what authorities have described as an intricate and well-orchestrated cybercrime network.
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