Samuel Wachenje and Hendrick Nyongesa Pilisi, former employees of the National Youth Service (NYS), have been convicted of fraud and conspiracy for their involvement in a scheme that led to the loss of KES 791 million allocated for a road construction project at an NYS facility in Kibera in 2015.
Hendrick Nyongesa, who served as the head of procurement at NYS, has been sentenced to seven years in prison after being found guilty of falsifying documents in violation of Section 347(a) as read with Section 349 of the Penal Code. In addition, Nyongesa has received a five-year sentence for breach of trust by a public servant, under Section 127(1) and Section 127(2) of the Penal Code. The court has ordered that the sentences run concurrently, with no option for a fine.
Meanwhile, Samuel Wachenje, the former NYS director of finance, was sentenced to five years in prison, also without the option of a fine.
The two men were convicted after being found guilty of conspiring to defraud the state agency of KES 791 million. The court heard that Nyongesa, alongside others not present in court, created a false Ministry of Public Works Supplies Branch circular, which they presented as an authentic document from the ministry to deceive others.
Lady Justice Wendy Kagendo Micheni of the Milimani Anti-Corruption Court in Nairobi stated that the prosecution had successfully proven that between December 1, 2014, and June 5, 2015, Wachenje and Nyongesa breached trust by authorizing payments without proper oversight. Their actions resulted in the loss of KES 791 million in public funds that were meant for a critical infrastructure project.
How Ex-NYS Officials Stole KES791 Million in Fraud Scheme
State prosecutors, led by Director of Public Prosecutions (DPP) Renson Ingonga, presented a strong case, calling 41 witnesses, including former NYS Senior Deputy Director-General Adan Harakhe and Nixon Oborah, the Acting Chief Finance Officer at the State Department for Planning in the Ministry of Devolution and Planning.
The court learned that between December 2014 and April 1, 2015, Wachenje and Nyongesa stole KES 791,385,000 by fraudulently inflating amounts across 25 transactions in the Integrated Financial Management Information System (IFMIS), adding extra zeros. They also fabricated multiple Local Purchase Orders (LPOs) attached to payment vouchers related to a road contract for the procurement of construction materials.
The stolen funds were transferred to three companies owned by Josephine Kabura Irungu, who is facing related charges in an ongoing case. These companies, Reinforced Concrete Technologies, Form Homes Builders, and Roof and All Trading, received KES 320,160,000, KES 218,925,000, and KES 252,300,000, respectively.
Court documents revealed that the actual cost of materials used for the road project was KES 78,857,835, which highlighted a discrepancy of KES 712,527,165 compared to the amount fraudulently recorded in the official tender papers. This discrepancy closely matched the additional KES 712,246,500 added by Wachenje and Nyongesa, further confirming the fraudulent nature of the transactions.
Further testimonies from Family Bank officials Solomon Ithamba and David Mwangi Munyori provided additional evidence. They confirmed that KES 77,000,000 of the stolen funds had been transferred from the Form Homes Builders account to another account linked to the accused individuals. This illicit transfer further implicated Wachenje and Nyongesa in the elaborate scheme to divert public funds meant for the road construction project.
