Three Family Members Convicted Over Sh113.2mn Kisumu Business Fraud

NAIROBI, Kenya, Oct 24 – Three family members have been convicted by a Kisumu court over a Sh113.2 million fraud scheme involving Kisumu-based Such Enterprises Limited, following a prosecution that uncovered the diversion of customer payments and wholesale goods.

Senior Principal Magistrate Fatuma Rashid found Christopher Okal, Grace Okal and Victor Anyumba guilty on all six counts as charged by the prosecution led by Principal Prosecution Counsel Douglas Moseti.

According to the Office of the Director of Public Prosecutions (ODPP), the fraud involved Sh113,227,529 that was not accounted for in the company’s records.

The court heard that the offences occurred on diverse dates between October 2020 and July 2021, when customer payments and wholesale goods were allegedly diverted from the business through a coordinated scheme.

Christopher Okal, who worked as an accountant at Such Enterprises Limited, was identified by the prosecution as the central figure in the scheme.

Evidence presented in court showed that he manipulated the company’s accounting system by creating fictitious transactions and diverting customer payments into bank and mobile money accounts associated with his co-accused.

Forensic document examination and other evidence presented by the prosecution showed that Okal used his access privileges to alter company records and conceal transactions.

An audit report presented to the court identified Sh113.2 million that had not been accounted for.

The court also heard that customers were instructed to deposit payments for goods into accounts linked to the three accused rather than the company’s official accounts.

The three accused had maintained that the transactions were legitimate business arrangements. However, the court rejected their explanation, finding that the prosecution had established a coordinated scheme to defraud the company and conceal the proceeds.

Magistrate Rashid accepted the prosecution’s argument that Okal masterminded the scheme and used accounts associated with Grace Okal and Victor Anyumba to receive customer payments and obscure the movement of the money.

The court further found Grace Okal and Anyumba guilty of participating in the theft and money-laundering activities linked to the diverted payments.

The prosecution called witnesses, including company employees, customers, bank officials, forensic examiners and investigating officers, to demonstrate how the scheme was executed.

The three were charged with conspiracy to commit a felony, contrary to Section 393 of the Penal Code, as well as money laundering and acquisition and possession of proceeds of crime under the Proceeds of Crime and Anti-Money Laundering Act.

Christopher Okal faced additional charges of stealing by servant, fraudulent false accounting and stealing under the Penal Code.

After weighing the prosecution evidence against the defence, the court found that the case had been proved against all three accused on every count.

They were convicted under Section 215 of the Criminal Procedure Code.

The ODPP said sentencing had been scheduled for October 29, 2026, when the court is expected to determine the penalties to be imposed on the three convicts.

The case highlights the role of forensic investigations, financial audits and witness testimony in uncovering alleged financial misconduct and establishing criminal liability in complex commercial fraud cases.