- The Ethics and Anti-Corruption Commission secured a court order against former Homa Bay County Assembly Clerk Bob Kephas Otieno and two others over KSh 12.5 million
- Justice Benjamin Musyoki ruled that payments made to Lillian Achieng and David Obonyo under the guise of salaries were fraudulent and unlawful
- Investigations revealed the funds were transferred from the assembly's salary suspense account to individuals who were not county employees
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TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
The Ethics and Anti-Corruption Commission (EACC) has secured a court order compelling former Homa Bay County Assembly Clerk Bob Kephas Otieno and two other individuals to repay the government KSh 12,571,166.50 in public funds that were fraudulently disbursed from the assembly's salary suspense account between 2015 and 2017.
Source: Twitter
The EACC announced the outcome in a statement posted on X on Thursday, October 22, following a judgment delivered on October 16, 2026, in which Justice Benjamin Musyoki ruled in the commission's favour.
How the fraud was carried out
Investigations established that between December 24, 2015, and December 22, 2017, Otieno, in his capacity as assembly clerk, authorised a series of transfers totalling KSh 12,571,166.50 into a joint bank account held by Lillian Achieng and David Obonyo.
The payments were disguised as salary disbursements, yet neither recipient held any employment with the county assembly or the county government.
The commission found that Achieng was a teacher employed by the Teachers Service Commission at the time, while Obonyo served as the business growth and development manager at Equity Bank's Homa Bay Branch.
Neither had any contractual or supplier relationship with the assembly.
Investigators also noted that the transactions were made in varying amounts on sporadic dates, a pattern that was inconsistent with routine salary payments and pointed to deliberate concealment.
"The case arose from investigations into the irregular transfer of public funds from the Homa Bay County Assembly’s salary suspense account to a joint bank account held by Achieng and Obonyo," EACC stated.
What was the court's finding?
The EACC filed a recovery suit under ACEC Suit No. E011 of 2022 after completing its investigations.
In his October 16 judgment, Justice Musyoki held Otieno directly liable for causing the loss of public funds through corrupt and fraudulent conduct.
Achieng and Obonyo were similarly found liable for receiving public money for work that was neither done nor services rendered.
The court's ruling requires all three to repay the full amount to the government.
The EACC said it remains committed to protecting public resources and ensuring that individuals responsible for the loss or misappropriation of public funds are held accountable.
How much did EACC recover in another case?
In related news, we also highlighted facts about the court order allowing the government to recover KSh 207.7 million in assets from former Trans Nzoia County accountant Andrew Biketi Musuya.
The assets include apartment blocks, a townhouse, land, cash deposits and vehicles.
The ruling followed a court finding that Musuya had not adequately explained how his assets matched his known legitimate income.
Source: TUKO.co.ke