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Illegal Payouts Based on Revoked Government Circulars
The Ethics and Anti-Corruption Commission (EACC) has successfully recovered Ksh39.1 million from two senior officials at the National Treasury who pocketed unlawful allowances by exploiting outdated and revoked government circulars.
According to court findings, the officials relied on circulars that had long been withdrawn or lacked proper authorization to justify the hefty payments.
High Court Issues Refund Order
In a ruling delivered on Thursday, June 4, 2025, Lady Justice Lucy Mwihaki of the Anti-Corruption and Economic Crimes Division of the High Court ordered the duo to refund the funds in full. The officials were accused of disguising payments as task force, extraneous, entertainment, and facilitation allowances.
Breakdown of Recoveries
The male official was ordered to repay Ksh20.3 million, of which Ksh11 million was already frozen in his bank accounts. He is expected to pay the remaining Ksh9.2 million in cash.
His female counterpart must return Ksh18.8 million, with Ksh8.9 million frozen and a balance of Ksh9.9 million due in cash.
Fraud Uncovered by EACC Investigation
The corruption scheme came to light in July 2022 after numerous complaints were lodged about the misappropriation of public funds at the National Treasury. EACC’s investigations revealed the payments were made between January 2020 and June 2022, with no approval from the Salaries and Remuneration Commission (SRC).
Court: SRC Guidelines Are Legally Binding
The High Court ruled that the officials violated Article 230 of the Constitution by ignoring SRC advisories. The court declared their conduct fraudulent and aimed at unjust enrichment at the expense of taxpayers.
EACC Praises Ruling, Vows More Recoveries
In a statement, the EACC hailed the ruling as a milestone in fighting economic crimes and ensuring stolen public funds are returned.
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