By Andrew Kariuki
Detectives from the Banking Fraud Investigation Unit (BFIU) have arrested and arraigned Seth Mwabe Okwanyo, also known as Seth Onyango Odhiambo, in connection with an alleged cyber fraud scheme that resulted in the loss of Ksh11.4 million from a microfinance institution.
According to investigators, the case stems from a formal complaint filed by the institution over a series of suspicious transactions that occurred on July 16, 2025.
On that day, thirty-eight transactions were processed through the institution’s system, leading to a total loss of Ksh11,410,165.
Investigations established that the transactions were not reflected in the institution’s internal records, despite being marked as successful on the recipients’ end.
Detectives said the anomaly suggested deliberate interference with the system’s visibility and control mechanisms.
Further forensic analysis revealed that system and database logs had allegedly been erased, raising suspicion of a coordinated attempt to conceal the activity.
Investigators also reported the unauthorised installation of a Java-based application within the institution’s system, which they believe was used to manipulate transaction processes.
Police allege that the suspect used the compromised system to transfer funds and subsequently channelled the proceeds through various accomplices in an effort to conceal the source of the money.
Okwanyo was charged with multiple offences, including unauthorised access to a computer system, computer fraud and money laundering.
He pleaded not guilty to all twenty counts.
The court released him on a bond of Ksh1.5 million or an alternative cash bail of Sh500,000.
The matter is scheduled for mention on March 3, 2026, as investigations continue.
