The Directorate of Criminal Investigations (DCI) is investigating a Chinese national accused of orchestrating a massive banking fraud in Kenya that led to the siphoning of over sh170 million from a local construction company.
According to documents filed with the DCI’s Banking Fraud Unit, the suspect allegedly used forged documents to open a fraudulent bank account and divert funds intended for government infrastructure projects.
Investigators say the suspect presented fake letters of authorisation and forged board resolutions to fraudulently appoint himself as a company director. This enabled him to manipulate internal payment systems and open an unauthorized bank account, which he allegedly used to receive funds from government tenders, including those from the Kenya Rural Roads Authority (KeRRA). The fraudulent account was separate from the one officially sanctioned by the company’s board.
The scheme came to light following an internal audit that revealed discrepancies in accounts receiving government payments. Forensic experts later confirmed that the signatures used to open and operate the account did not match those of the legitimate directors.
Preliminary findings indicate that the fraud occurred in 2020, during the peak of the COVID-19 pandemic. At the time, the company’s genuine directors were reportedly stranded abroad due to travel restrictions, creating an opportunity for the suspect to activate the fake account and begin diverting funds.
One of the company’s directors has since recorded a statement with the DCI, distancing himself from the fraudulent account. He stated that no board meeting or resolution had ever approved the creation of such an account, and that he only became aware of it after suspicious transactions were flagged in an internal audit. The director also expressed concern that his identity may have been misused and called on the DCI to take swift action.
In a twist, the suspect has filed a counterclaim in the High Court in Nairobi, seeking compensation amounting to millions of shillings. He alleges that the sum includes unpaid salary and personal funds he used to support company operations over several years. Through his lawyers, he claims the company is winding down its Kenyan operations and relocating abroad a move he says could complicate recovery of his alleged dues without court intervention.
The High Court has already issued an order freezing the disputed bank account. The case is set for mention on October 29, when the court is expected to give further directions.
