Detectives from the Banking Fraud Investigation Unit (BFIU) have arrested and arraigned cyberfraudster Seth Mwabe Okwanyo, also known as Seth Onyango Odhiambo, for allegedly orchestrating a scheme that siphoned Sh11.4 million from a leading microfinance institution.
The arrest followed a formal complaint lodged by the microfinance institution, detailing a shocking incident that occurred on July 16, 2025.
On that day, a total of 38 fraudulent transactions were executed through the institution’s system, resulting in a loss of Sh11,410,165.
Investigators revealed that these transactions bypassed the company’s internal monitoring and control systems, raising serious concerns about security breaches.
Further investigation uncovered that the 38 transactions were missing from the institution’s official records, yet they were flagged as successful for the recipients.
This discrepancy suggested that the perpetrators had deliberately erased both system and database logs to cover their tracks.
Authorities also discovered the unauthorized installation of a Java application in the system.
Using this malicious software, Seth Mwabe Okwanyo allegedly manipulated the system to steal funds and launder the money through various accomplices.
In court, Seth faced multiple charges, including Unauthorized Access to a Computer System, Computer Fraud, and Money Laundering.
He pleaded not guilty to all 20 counts.
The court granted him bail, allowing his release on a bond of Sh1,500,000 or a cash bail of Sh500,000.
The case is scheduled for mention on March 3, 2026, as authorities continue investigations to unravel the full extent of the cybercrime.
Additional Reporting: Directorate of Criminal Investigations (DCI)
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