Senior Treasury employee charged in a Sh800 million heist
The National Treasury in Nairobi.
A senior treasury official alleged to have improperly paid himself over Sh799.84 million in the Sh1.57 billion National Treasury heist was charged on Tuesday at the Anti-Corruption Court.
Mr Billy Otieno Obango was charged before Principal Magistrate Rose Ndombi.
Obango was brought to court on a warrant of arrest, having skipped court for close to a month.
He, however, explained to the court that he had health challenges.
Obango denied that between June 1, 2019, and June 30, 2022, being the Project Accountant-Programme for Rural Outreach of Financial Innovation and Technology (PROFIT), he abused his office by improperly conferring on himself a benefit of Sh799.84 million by unlawfully authorising payments through cheques from a Cooperative Bank Account held in the name of PROFIT.
According to the charge sheet filed in court, Obango falsified a document to wit a memo Ref:DFN 126/013/22 to the Branch Manager, Kenya Commercial Bank, Eldoret Branch, purporting it to be a genuine memo authored by the Director, Economic Affairs at the National Treasury and Planning Economic Affairs Department.
The magistrate heard that Obango and Gladys Juliet Oroni alias Gladys Juliet Chepkarat, being signatories of a KCB account number 1304251217, jointly acquired Sh173.3 million from a National Treasury Account domiciled at the Central Bank of Kenya (CBK) while knowing that said money formed part of proceeds of crime.
Between October 18 2023 and December 13, 2023, withdrew Sh897,000 from KCB, knowing the money was acquired from the commission of a crime.
Obango and Gladys are also alleged to have transacted Sh9.98 million, Sh14.67 million and another Sh14.4 million from KCB when they were the sole proprietors of Mawindo Enterprises Limited, Brigs Agencies and Greenbail Agencies, while knowing said monies were proceeds of crime.
The said sums were utilised between October 18, 2022 and December 14, 2023.
On October 18 2022 and December 14 2023, both Obango and Gladys, being signatories to a KCB account, jointly transferred Sh23.4 million to NCBA and Cooperative Bank, respectively, with an aim of concealing the nature of the said money.
Obango, who was charged alongside Paul Mukasiali Shilaho in the Sh1.57 billion financial impropriety case involving National Treasury staff and business proprietors, pleaded for reasonable bond terms in the case with 122 charges.
Some of the individuals charged in connection with the Sh1.5 billion treasury fraud case appeared in court at the Milimani Anti-Corruption Centre.
Obango and Shilalo skipped court on August 19, 2026, when the first batch of suspects were charged and 17 others who jumped court were ordered to be arrested.
Obango, the second defendant named on the charge sheet who faces 45 separate counts, was released on a bond of Sh15 million or cash bail of a corresponding amount (Sh15million). Obango’s lawyer applied for his release on bond due to medical issues which had prevented his earlier court attendance.
The court heard that he is not a flight risk, serves as his household's sole provider, and cares for his ageing mother.
His defence lawyer affirmed that Obango remains committed to appearing for all required sessions.
State prosecutors did not oppose the application, requesting only that the court retain Obango's passport.
Shilaho, who denied charges of unlawful acquisition of proceeds of crime of Sh9.8 million from KCB through his company Kemula Agencies, was granted a Sh1.5 million bond or an alternative cash bail of Sh1 million.
Defence counsel for Shilaho cited Shilaho's medical conditions coupled with a constrained economic background as reasons for a reasonable bail term.
The court heard that Shilaho is a low-income earner lacking formal employment.
The DPP did not oppose his release on bond but urged the court to compel him to deposit his passport.
However, the court heard Shilaho does not hold a passport.
Obango denied that he abused his office by improperly conferring on himself a benefit of Sh799.8 million by unlawfully authorising payments.
Ms Ndombi noted in her ruling that she considered all the submissions presented by the state and defence, and the variance in the nature of charges faced by each defendant.
She freed Shihalo on bond, then directed the case be mentioned on November 3, 2026 for pre-trial directions alongside other co-accused who had previously pleaded on the 121 counts and were released on bond.
In the alleged Sh1.57 billion rip-off, the monies were released by the International Fund for Agricultural Development (IFAD) and the Government to boost incomes for persons engaged in income projects and agricultural activities at the grassroots.
State prosecutor Alex Akula stated on August 19, 2026 senior treasury employees engaged in a complex web of fraud which led to the loss of Sh1.57 billion from the World Bank, channelled through Treasury, to alleviate poverty and support small-scale farmers.
The lost monies, the magistrate heard, were released by the National Treasury through the Programme for Rural Outreach of Financial Innovations and Technologies (PROFIT).
The programme was aimed at enhancing incomes of the rural folk and reducing poverty at the grassroots level.
Those arraigned earlier were Programme Coordinator at the National Treasury, John Ngure Kabutha, Nemwel Moturi Motanya, John Maina Muriithi, Gladys Juliet Oroni alias Gladys Juliet Chepkarat also trading as Mawindo Enterprises, Brian Kiprop Chepkarat and Ian Kwemoi Chepkarat.
Others charged included James Omwondo, Jimmy Carter Odoyo Odongo and Josphat Kamau Kamoshe.
They all denied 121 charges of abuse of office, unlawful acquisition of public funds, money laundering and acquisition of proceeds of crime.
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