By Valentine Omondi

A long-running investigation into the alleged misappropriation of Sh1.57 billion from the Programme for Rural Outreach of Financial Innovations and Technologies (PROFIT) has entered a new phase after the Director of Public Prosecutions approved the prosecution of nine suspects, including officials from the National Treasury who were tasked with coordinating the programme.

According to a press statement issued by the Office of the Director of Public Prosecutions on August 18, the DPP reviewed an inquiry file submitted by the Ethics and Anti-Corruption Commission and established sufficient evidence to charge the suspects over the alleged loss of Sh1,569,582,338.20.

PROFIT was a financial inclusion programme under the National Treasury that sought to expand access to financial services and technologies in rural Kenya. The programme was implemented with support from the International Fund for Agricultural Development (IFAD), a United Nations specialised agency focused on rural development and poverty reduction.

The DPP says the suspects face charges including abuse of office, unlawful acquisition of public property, uttering a false document, financial misconduct, acquisition of proceeds of crime and money laundering.

The nine suspects named in the statement include John Ngure Kabutha, the PROFIT Programme Coordinator; Namwel Moturi Motanya, Head of the Accounting Unit at the National Treasury; John Maina Muriithi, a Senior Accountant at the National Treasury; Gladys Juliet, proprietor of Mawindo Enterprises; Brian Kiprop, proprietor of El Konyinta Technologies; Ian Kwemoi, Director of o2o Investments Limited and Vidi Vici Limited; Josphat Kamau, Director of Blue Dart Agencies Limited; James Omwodo, proprietor of Ednas Agencies; and Jimy Carter Odoyo, proprietor of Cadnic Investments.

The prosecution decision comes after an investigation that had already moved into the courts, with EACC pursuing the alleged loss of funds and seeking preservation of assets linked to the case.

From a rural finance programme to a corruption investigation

PROFIT was established to address financial exclusion in rural Kenya, particularly by improving access to financial services for rural communities and supporting economic activities such as agriculture.

The programme, which was jointly supported by the Kenyan Government and IFAD, operated for several years before officially coming to an end on December 31, 2019.

It is the events surrounding the programme’s finances, including transactions investigated after its closure, that subsequently drew the attention of anti-corruption investigators.

EACC’s investigations placed the alleged loss at more than Sh1.55 billion and resulted in court proceedings seeking to preserve funds and property allegedly connected to the suspected financial misconduct.

Reports based on EACC court documents indicated that investigators were examining transactions involving funds allegedly released to accounts associated with PROFIT after the programme had ended.

The investigation also traced alleged proceeds into private entities and properties, leading EACC to pursue preservation orders as part of efforts to safeguard assets pending recovery proceedings.

These proceedings had already placed the financial affairs of PROFIT under judicial scrutiny before the DPP made the latest decision.

The investigation had been building before the DPP’s decision

The August 18 announcement therefore represents a new stage rather than the beginning of the case.

EACC had previously taken several people linked to the investigation before the anti-corruption courts. A Milimani Magistrates’ Court cause list from November 2024 included EACC matters involving individuals who later featured in the PROFIT investigation.

The commission subsequently pursued asset preservation proceedings as investigators sought to establish where the alleged proceeds had gone.

The case also attracted attention from IFAD, which said it had initiated internal investigations after becoming aware of the allegations contained in EACC’s court filings.

The development partner noted that the alleged misuse of funds occurred after PROFIT had closed in 2019, when its direct oversight of the programme had ended.

The DPP’s latest decision now brings the criminal aspect of the matter into sharper focus.

The suspects will be required to answer to the charges before a court of competent jurisdiction, where the prosecution will have to prove the allegations contained in the EACC inquiry file.

The DPP has also directed that the companies and businesses implicated in the inquiry be charged.

For a programme established to expand financial opportunities for rural communities, the case has evolved into a major accountability test involving public officials, private businesses and more than Sh1.5 billion in alleged misappropriation.

The August 18 decision means the long-running PROFIT investigation has now moved from the investigative and asset recovery stages to the criminal prosecution stage.

The court will ultimately determine whether the allegations against the nine suspects are proven.

By Anderson Ojwang

The irony of the Governor Gladys Wanga administration. At one point, Wanga is shedding tears over the description of Homa Bay county as Yemen over dilapidated and collapsed road infrastructure.

On the other hand, Wanga and her administration have maintained studious silence over the ongoing nurses’ strike which has entered its sixth week.

Health facilities across the county are not offering services, with most remaining shut due to the nurses’ strike.

At Homa Bay Referral Hospital, the largest health facility in the county, the majority of wards, including the maternity ward, remained shut. Only Ward Three and Ward Four were operating at the hospital. The wards are run by a non-governmental organisation, assisted by a few workers employed by the hospital.

The residents have been forced to seek medical services in other counties, and even the victims of the Sunday violence on the Linda Mwananchi could not access medical services at the health facilities in the county.

Grievances

Among their grievances, the nurses want their CBA signed so that it is legally binding. The CBA provides nurses with career progression guidelines and allowances, among other benefits.

They want the 2017 return-to-work agreement their union signed with the Council of Governors implemented.

Parallels

Homa Bay county witnessed a parallel set of Wanga’s administration: a dysfunctional health department versus a functional and well-oiled political machine that traversed every part of the county, dishing out handouts while development slept on the rags.

On the eve and the D-day of the rally, youths allegedly pocketed between Sh 4,000 and above to stop the rally.

Homa Bay MP and Wanga’s right-hand man, Opondo Kaluma, told the boda boda operators that their motorcycles would be fuelled and that the funds had been channelled to their leaders.

In the National Cohesion and Integration Commission’s own translation of Kaluma’s statement: “As from today we are issuing the command that anyone that says one term, deal with them. Anyone that has worked with the other side, even if they were a driver and they feel they cannot walk with us, must now disappear. We are going to inspect all hotels and houses where they had booked; anyone who owns a hotel in Homa Bay must tell us all the guests they have; we must deal with those people and we might deal with the hotel too. I have paid for the fuel you will use to move across Homa Bay and Rodi. This is an ODM stronghold and we insist that Ruto is two-term. If anyone speaks of one term, deal with them.”

The pain

The contractors

In September last year, contractors and suppliers threatened to paralyse services at the county government over pending bills.

Senator Moses Otieno Kajwang last year said he had received a memorandum from contractors from Homa Bay County over unpaid pending bills.

The Homa Bay County Government has KSh 480 million in verified eligible pending bills owed to contractors.

Beyond stopping the rally, what about development?

Governor Wanga rightly wrote: “However, devolution matters. Some would ask what devolution has done? It is devolution, championed for decades by leaders including Raila Odinga, that has begun to give counties like Homa Bay a say over their own development and a share of resources once concentrated at the centre. This has turned the case for correcting marginalisation from a matter of goodwill into a constitutional guarantee.”

The conferences

Homa Bay County’s endless conferences are yet to yield any potential in the form of development and investments, despite the last high-level Homa Bay International Investment Conference in 2024, the Devolution Conference, and now the Smart Cities and Townships Conference scheduled for this month.

MOU

Governor Gladys Wanga recently signed an MoU with the World Smart Cities Forum to position Homa Bay as a pilot region for integrated development. The partnership will focus on healthcare, infrastructure, renewable energy, and industrial growth.

The Homa Bay International Investment Conference 2024

Homa Bay County stirred the public with high-voltage international investment and trade conferences that turned out to be pipe dreams.

In 2024, Governor Wanga hosted the second International Investment and Trade Conference, which was attended by President William Ruto and former Prime Minister the late Raila Odinga, among others. It was billed as a milestone in exploiting the endless potential of Homa Bay County, and afterwards, it gained a positive ranking.

During the recent International Investment Conference, the Homa Bay County Government and investors signed nine Memoranda of Understanding (MOUs).

Wanga commended all stakeholders, including the executive, partners, and sponsors, for their contributions to the success of the investment conference.

MOUs signed

The county government signed MOUs with various organisations, including Afropal International Limited, Ento Tech Africa Limited, Yazmark International, Rift Valley Products Limited, Manda University Trust, Fairdeal Real Estate, Kenya Shipyard Limited, and Redington.

Wanga said that in the agricultural sector, Afropal International Limited, in collaboration with the national government, would provide a framework for edible oil palm production around the Lake Victoria region, including Homa Bay County.

Yazmark International and the Homa Bay County Government are set to establish a 50-bed Mother and Child Specialist Hospital to tackle regional healthcare challenges.

“With regards to education, the county is expected to establish Manda University Kenya to specialise in health sciences and agricultural courses through a partnership with Manda University Trust,” she added.

The Governor said Fairdeal Real Estate is set to invest in affordable housing and student hostel construction projects to support the growing population in the county.

On the other hand, Redington, through the partnership, was also expected to generate solar power that would benefit beaches, schools, and hospitals not connected to the national grid in Homa Bay, which will promote employment and technology transfer.

Tragedies

The tragedy is that after the signing of the MOUs, nothing has happened, with no investors on site in the county.

The Riwa Industrial Park, which was expected to host investors, is incomplete and an eyesore.

Riwa, which is a joint project between the national government and county government, currently stands at 37 percent completion. This was despite the national government having contributed its 50 percent share of Sh250 million, while the county government had allocated and disbursed Sh250 million.

The sad reality is that at the Riwa Industrial Park, there is no roofing, and the fencing of the facility is incomplete.

Murang’a on the move after the conference

While Murang’a County, which held its investment conference last June this year, in October last year invited investors to bid and submit proposals.

Governor Irungu Kang’ata recently wrote on his X handle: “Invest in Murang’a now. The county formally invites applications for investment opportunities, particularly manufacturers.”

In the post captioned “Investment Opportunities in Murang’a County” , he called for public requests for proposals pursuant to Section 12(1)(E) of the Land Act, Cap 28.

What next after stopping the rally, and was it worth the investment?

By Valentine Omondi

Former Chief Justice David Maraga has given President William Ruto a seven-day ultimatum to release the complete and unedited report of the National Taskforce on Police Reforms, warning that he will publish it himself if the President fails to act.

In a letter dated August 18, 2026, Maraga, who chaired the taskforce, questioned why the report handed to President Ruto nearly three years ago remains unavailable to the public.

The taskforce presented its report to Ruto on November 16, 2023, following its examination of challenges affecting Kenya’s security sector and the National Police Service.

Maraga argued that Kenyans have a right to access the document because the taskforce’s work was undertaken using public resources.

He invoked Article 35 of the Constitution, which guarantees the right of access to information held by the State, and demanded that Ruto release and publish the complete report within seven days.

Maraga further warned that if the President fails to comply, he will make the report public himself.

Maraga questions delay in releasing the report

The former Chief Justice’s demand comes amid renewed concerns over the conduct and independence of the National Police Service.

In his letter, Maraga referred to recent incidents in Homa Bay, Keumbu and Ol Kalou, as well as violence reported at churches in Kisumu, Nairobi and Witima.

He linked the developments to the broader question of police independence and accountability, arguing that the reforms proposed by his taskforce were intended to address longstanding concerns, including police brutality and impunity.

Maraga questioned why the recommendations have not been fully implemented nearly three years after the report was submitted to the President.

He cited constitutional provisions governing national security organs and the National Police Service, particularly those requiring the police to exercise their functions independently and without improper interference.

The former Chief Justice warned that Kenya should not return to a period in which political interference in security institutions resulted in serious abuses.

What is publicly known about the taskforce’s work

The taskforce’s work was broadly focused on reforms within the National Police Service and other security institutions. Issues publicly associated with the reform process have included police welfare, remuneration, recruitment, leadership, corruption, equipment and the independence of security agencies.

President Ruto had previously received an interim report from the taskforce and accepted some recommendations touching on police remuneration, recruitment and transfers.

Maraga’s latest demand, however, concerns the complete and unedited report, rather than selected recommendations or an interim document.

His argument is that Kenyans should be allowed to see the document and assess the recommendations for themselves.

The seven-day ultimatum now puts the President on notice that failure to release the report could result in Maraga publishing it independently.

The former Chief Justice’s intervention comes at a politically sensitive moment, with questions surrounding police conduct, political violence and the independence of security institutions once again dominating public debate.

For Maraga, the issue is therefore not only about implementing police reforms but also about transparency and the public’s constitutional right to information.

The seven-day period now becomes the key test of whether the government will release the long-awaited document or whether Maraga will proceed with his threat to make it public himself.

Kenya’s debt crisis did not emerge overnight. In my view, one of the most consequential policy changes was the 2014 amendment to the Public Finance Management Act, particularly Section 50(7)(d), which opened the door for pre-negotiated borrowing expenses to be paid directly at the closing of external loans.

“…applied, in part, to pay at closing, pre-negotiated expenses associated solely and exhaustively with the borrowing, including but not limited to, the fees, commissions and expenses of lenders, financial arrangers, managers and book runners…”

This provision entrenched a debt brokerage ecosystem around sovereign borrowing. It deserves urgent review and repeal if Kenya is serious about restoring transparency and accountability in public debt management.

Kenya’s public debt has risen from approximately KSh 1.79 trillion (about US$14 billion) in 2014 to nearly KSh 13 trillion (about US$100 billion) today. While many factors contributed to this growth, ending the brokerage model is, in my view, one of the fastest structural reforms we can make.

The fastest way to begin solving Kenya’s debt problem is to stop the brokerage business.

By Andersen Ojwang

Even before the dust of the dusty Mbita‑Sindo‑Kiabuya‑Sori corridor settles, telling the sad reality of the dilapidated road networks in Homa Bay county, another shocker: the only publicly owned black smoke in the greater Southern Nyanza, and more specifically Migori county, the Sony Sugar Company Limited, has been placed under the auctioneer’s gong over debt.

The move by Cooperative Bank of Kenya to place the company for auction opens a can of worms over the recent government move and commitment on the publicly owned sugar factories.

In a letter to the Chief Executive Officer of the company by the bank, dated 14th July 2026, captioned “Notification of Sale of Property – South Nyanza Sugar Company Limited” , read:

“We refer to statutory demands notice dated 13th August 2025 (the 90 days’ notice). As you are fully aware, and despite the notice mentioned above, you have not rectified the default, and you owe the Bank Sh 862,328,980 as of July 2026 in respect of a facility granted to South Nyanza Sugar Company Limited.”

The Bank said the facility was used as security to secure the loan facility.

“The said facility is secured by, inter alia, a legal charge over property registered in the South Nyanza Sugar Company and a first ranking all‑asset debenture in favour of the Bank.”

The letter said the Bank intends to exercise its statutory power of sale, as aforesaid, after expiry of 40 days from the date of service of the notice upon the management, unless they pay the default and all outstanding balances owed.

“Please take note that any repayment arrangements entered into between yourselves and the Bank and/or any payments made by you after the date of this notice shall be accepted by the Bank strictly on account, and without prejudice to the Bank’s right to proceed and realise its securities as aforesaid,” read the letter.

The voice

Uriri MP Mark Nyamita said that the leaders from the region will not accept the auction of the facility.

He said the Ministry of Agriculture undertook the liabilities of the public sugar factories, including the debts and the unpaid workers’ salaries, during the privatisation.

“We are taking up this matter with the Government over their commitment. I will lead a delegation to CS Mutahi Kagwe to correct this mess. We want to see the government meets its part of the bargain, and we cannot stand to witness the sale of the only factory in the region,” he said.

What became of the Government Commitment?

Last year, ahead of the privatisation, the government wrote off over Sh117 billion in debt to bail out the local sugar industry and injected an additional Sh2.5 billion to clear arrears owed to farmers and workers.

Similarly, the government also issued a termination notice declaring all employees at the four leased sugar factories redundant.

In a memo from the Permanent Secretary, Ministry of Agriculture and Livestock Development, Dr Kipronoh Rono, dated 12th August 2025, captioned “Re‑Issuance of Termination Notices to Employees Under Redundancy” :

“In light of the ongoing restructuring of public sugar companies under the leasing framework, and in accordance with the provisions of Section 40 of the Employment Act 2007 and the respective Collective Bargaining Agreements, you are hereby directed to issue formal redundancy notices to all affected employees in your organisation,” he wrote.

The memo was written to Managing Directors: Nzoia Sugar Company, South Nyanza Sugar Company, and Chemelil Sugar Company, and Joint Receiver Manager, Muhoroni Sugar Company.

Recently, the Cabinet Secretary for Agriculture and Livestock Development, Mutahi Kagwe, said that following broad‑based consultation, four private millers were awarded a 30‑year lease for the operation of Nzoia, Chemelil, Sony Sugar Company and Muhoroni Sugar Companies.

“The procurement of the four firms followed broad‑based engagement with stakeholders across the sugar sector dating back to the year 2015 when Parliament approved the process,” he said.

In a press statement, the CS said the leasing of Nzoia Sugar Company was awarded to West Kenya Sugar Company, while that of Chemelil Sugar Company was awarded to Kibos Sugar & Allied Industries Limited.

He said the leasing of Sony Sugar Company was awarded to Busia Sugar Industry Ltd, and that the leasing of Muhoroni Sugar Company was awarded to West Valley Sugar Company.

He observed that the decision to lease out the four factories was arrived at after lengthy consultations with key stakeholders across the sugar sector, including farmers, sugar factory workers, unions, Members of Parliament, Governors, and approvals by the Cabinet.

Investment

The investors were expected to invest Sh12.29 billion towards the revival of the sugar factories.

Under the lease agreement, the following investments will be made:

West Kenya Sugar Company, which won the lease for Nzoia Sugar Company, will invest Ksh 5,764,331,333 into the factory.

Kibos Sugar & Allied Industries Ltd, which won the lease for Chemelil Sugar Company, will invest Ksh 4,500,000,000 into the factory.

West Valley Sugar Company Ltd, which won the lease for Muhoroni Sugar Company, will invest Ksh 1,023,000,000 into the factory.

Busia Sugar Industry Ltd, which won the lease for Sony Sugar Company, will invest Ksh 1,000,000,000 into the factory.

Employees

Employees at South Nyanza Sugar Company Limited (Sony Sugar) had their services terminated by 31st October 2025 due to redundancy declared by the government.

Employees at the four leased sugar factories now face termination of employment after the government moved to declare redundancies.

By Anderson Ojwang

Homa Bay Governor Gladys Wanga is under siege. The once shining and bright political future is moving towards an eclipse.

A thick dark shadow is fast spreading a web on the once ever-rising and bright political career of the former Kisumu Girls Head Girl.

A pregnant, thick and dark cloud looms large on Wanga’s face, threatening to consume or make her. The outcome of the current political storm will have everlasting implications on the governor’s destiny.

The growing call for her arrest and that of her close allies, Homa Bay MP Opondo Kaluma and Homa Bay County Assembly majority leader Richard Ogindo, over the violence which visited the county on Sunday, could be the beginning of the slide.

On the eve of the rally, Kaluma directed and banned the use of the word ‘Wantam’, warned of dire consequences, and said that the residents had made a conscious decision to support President William Ruto’s re-election.

Kaluma had declared war on the Linda Mwananchi group and termed them as enemies. Kaluma did not stop at that; he directed youths to ransack hotels which were believed to be hosting members of the team ahead of the rally.

“We are going to ransack homes and hotels to deal with the people and the hotels. We have given direction, deal with them,” he said.

Ogindo too had declared that the Linda Mwananchi group was not allowed in the county.

The aftermath

From the chaos that rocked the county and Homa Bay town on Sunday, police reported the death of a police officer who was guarding the Linda Mwananchi group, destruction of properties and several injuries. In the police report, one officer was killed while ten other officers were injured, while 24 civilians also sustained serious bodily aggravated injuries, and 17 vehicles were damaged with some burnt.

In a statement, Linda Mwananchi demanded that Wanga, Kaluma and Ogindo account for their role or lack thereof in the attack in Homa Bay.

“We are calling on Governor Wanga, Kaluma and Ogindo and any other Homa Bay county leader whose name may have come up in connection with yesterday’s events, to publicly account for their role – or lack of one – in what happened in the county on their watch,” read the statement.

Last night, the National Cohesion and Integration Commission issued a summons to Kaluma to appear before it on Wednesday 19th August 2026 to assist with investigations. The Commission, basing its summons on Kaluma’s speech before the rally, has set into motion a cocktail of events.

Meanwhile, MP Millie Odhiambo lamented: “I hate the kind of politics I am witnessing in Homabay today. Brother against brother using pangas. Sister against sister using pangas. Attack your opponents with ideas.”

Kisumu Women Representative Ruth Odinga, angered by the happenings, condemned the violence in Homa Bay.

“My heart is bleeding at the events preceding Homa Bay Linda Mwananchi’s scheduled rallies. I condemn, without reservation, the use of our young sons and daughters to propagate violent attacks in Homa Bay, in a bid to stop Linda Mwananchi from conducting their series of rallies. I equally condemn, in the strongest terms, the assault on journalists Fred Ooko and Brian Ongoro of AFP, who were attacked and had their equipment destroyed simply for doing their jobs,” she said.

Odinga said the attack on the political convoy was an attack on the right of every Kenyan to move, assemble, and associate freely – rights our Constitution guarantees and that too many of our people have paid for in blood.

“As a leader born in a political family, and conscious of the history of our country, I cannot help but see a dangerous pattern in Luo Nyanza, where a region whose sons and daughters paid the ultimate price for us to get democracy has turned around and is now being used to stifle the very democracy those before us fought so hard for,” she said.

Odinga wondered who could be behind the division among the Luo community. “Who is keen on dividing us? Who stands to benefit?” she quipped.

She said Nyanza should be the last region in Kenya where a political rally cannot proceed in peace, where a convoy cannot pass safely, where journalists cannot do their work without being attacked.

She said the leaders stood accused of the violence and intolerance emerging in the region.

“We, the leaders, stand accused. We are the ones mobilising and funding the youth to disrupt lawful gatherings. We are rattling pretty fast towards a dark abyss, and when we get there, getting out of it will be a different story. So this madness must just stop; otherwise we will not have a country. We owe our children a Homa Bay and a Nyanza, where political disagreement is a conversation, not a battlefield,” she said.

Business

Homa Bay town was like a war zone: properties and businesses destroyed, livelihoods disrupted, and peace thrown out of the window. The struggling Homa Bay economy was thrown back to its knees and may take years to restore.

Contradictions

On Sunday, Wanga, speaking in Kanyaluo at Wikondiek SDA church during a funds drive, claimed the police had arrested a ‘goon’ associated with the Linda Mwananchi group. The alleged arrest of one Olivet was actual rumour. No arrest so far.

Costly mistake and blunder.

From whatever point you look at it, the buck stops with Governor Wanga as the county supremo. Wanga made a costly mistake and blunder to have allowed her allies to allegedly advocate for violence, thus subsequently placing her right inside the storm.

Her welcome of Linda Mwananchi to the county was washed down the drain by the utterances of her allies. The aftermath has not sat down well with Kenyans and the electorate, who have criticised her on various mediums.

Similarly, the successful rallies in Suba South, despite camping in the area, were a slap in the face. Again, the arrival of the Edwin Sifuna and Babu Owino-led group in Homa Bay town, despite the earlier warning, marked the anticlimax of her politics.

The die is cast, and Wanga’s light could be brightening or fading away like the morning star.