Court Orders Former Homa Bay Officials to Repay Fraudulently Transferred Sh12.57 Million

Homa Bay:The High Court has mandated former Homa Bay County Assembly Clerk Bob Kephas Otieno and two others to reimburse Sh12.57 million that was found to have been fraudulently and unlawfully transferred from the assembly into their joint bank account.

According to Kenya News Agency, Justice Benjamin Musyoki, in a judgement issued on October 16, 2026, instructed Otieno, along with Lillian Achieng Aloo and David Obonyo, to repay Sh12,571,166.50 to the government. The repayment includes interest at court rates from the date the suit was initiated until full payment is made.

The case involved irregular fund transfers between December 24, 2015, and December 22, 2017, from the Homa Bay County Assembly’s salary suspense account into a joint account held by Achieng and Obonyo. It was revealed that Achieng, a teacher, and Obonyo, a bank manager, were neither employees nor contractors of the county government or assembly.

The Ethics and Anti-Corruption Commission (EACC), which was awarded the case costs, argued the payments were unauthorized and lacked the necessary documentation. The court found that Otieno had approved these transfers under the pretense of salary payments for Achieng, despite her not being an employee.

In their defense, the accused claimed the payments were for services provided through their business, Damila Enterprises, including catering during funerals. However, the court found insufficient evidence of legitimate work or services and criticized the lack of procurement records and approvals.

Justice Musyoki ruled that the payments were fraudulent and held Otieno responsible for the public fund loss due to corrupt conduct. Achieng and Obonyo were also deemed liable for accepting public money for unverified services, rejecting their claim of legitimate business transactions.

The ruling underscores the need for public officers to ensure lawful management of resources, with the EACC emphasizing its commitment to recovering public funds lost through corruption and fraudulent activities.