Kenya Maritime Authority HR Manager Arrested in KES 40.5 Million Fraud Scandal

Henry Mwasaru, the Head of Human Resource and Administration at the Kenya Maritime Authority (KMA), was arrested on Tuesday over his alleged involvement in a fraudulent tender process for a medical insurance cover amounting to KES 40,539,760.

The arrest, executed by the Ethics and Anti-Corruption Commission (EACC), highlights the ongoing battle against corruption in Kenya’s public sector.

Mwasaru, who also serves as the Assistant Director in charge of Human Resource Management at KMA, is accused of conspiring with Ms. Bevaline Lundu, the Head of Supply Chain Management at KMA, to unlawfully award the medical insurance tender to an insurance agency.

The scheme is believed to have circumvented established procurement laws, allowing KMA officials to systematically exploit public resources for personal gain.

The operation that led to Mwasaru’s arrest also targeted two insurance brokers allegedly involved in the fraudulent activities. This coordinated effort underscores the EACC’s commitment to tackling corruption, particularly in the procurement processes within public institutions, where officials often engage in bid-rigging and the exchange of kickbacks.

The investigation into KMA’s procurement of staff medical insurance was initiated following a complaint received on September 30, 2024, which detailed irregularities in the tendering process. Authorities believe that KMA officials manipulated the procurement system to ensure that the medical insurance tender was awarded to specific providers in exchange for undisclosed benefits.

As part of the operation, the EACC seized valuable evidence that will bolster their ongoing investigation, signaling a proactive approach to rooting out malfeasance within public institutions.

The medical insurance sector has become an increasingly scrutinized area for corruption, with the EACC claiming that some officials exploit this domain as a conduit for embezzling public funds. The Commission has intensified its focus on the procurement of staff medical insurance across various public entities, recognizing the profound impact that corrupt practices can have on service delivery and public trust.