The case of tycoon Mohammed Jaffer and his company Grain Bulk Handlers Limited is making headlines for defrauding an importer Sh730 million.

According to the court documents, Atta Kenya Limited is demanding the amount from GBHL for selling its 13,000 metric tonnes of wheat that was being stored at the silos in Mombasa.

The importer claims that between 2013 and 2014, it entered into various contracts with Louis Dreyfus Company Limited to purchase 38,500 metric tonnes of milling wheat, out of which 29,500 metric tonnes were shipped into Kenya through two vessels, Kiran Marmara and Clippers Bliss.

However, Atta Kenya fell into arrears of the contractual storage charges payable to GBHL and statutory customs charges paid to KpleRA after its bank failed to honour its financing obligation.

The company said it applied for a waiver of custom warehouse arrears, which was waived to 30% of the accrued rent.

Atta also engaged Grain Bulk intending to be allowed to organize an alternative financing of the storage charges.

However, despite the pending engagement, Grain Bulk engaged its lawyer and Beyond Auctioneers with a view of recovering the storage charges through auctioning.

Beyond Auctioneers placed a gazette notice claiming it would sell some of the 13,196 metric tonnes of assorted wheat.

On June 17, 2017, Beyond Auctioneers placed a notice on a newspaper inviting bids for the sale of the 13,196 metric tonnes.

The auction was purportedly held on June 17, 2017, where Grain Industries emerged as a winner.

After the purported auction, LDCI, the company that sold wheat to Atta Kenya, moved to court to stop the sale of some 6,964 metric tonnes of wheat, saying Atta Kenya had not paid USD 2,263,759.

Atta Kenya objected, saying it paid the full amount for the purchase of wheat from LDCI and other incurred charges by Kenya Revenue Authority, Kenya Ports Authority, and  purchase of custom bags and custom warehouse charges.

However, during the pendency of the suit, Atta Kenya received yet another letter from Grain Bulk’s lawyer, saying the wheat had been sold to Grain Industries for Sh217,475,252.

Despite the letter being dated July 3, 2017, Atta Kenya said they came to know about the existence of the letter in early September of that year.

From the purported auction, the wheat was sold at only Sh217,475,251.

Atta Kenya was paid only Sh28,492,951 after Grain Bulk subtracted the storage charges and other various charges that had accrued.

“The plaintiff avers that it is entitled to the sum of Sh730,292,207 together with interest and lost profits,” Atta Kenya told the court.

While testifying in Grain Bulk Handler legal officer Joseph Mwela was at pains to explain why the company was in a rush to auction the wheat, despite undertaking from Atta Kenya to settle the accrued storage charges.

Atta Kenya’s lawyer Miller Bwire, while cross-examining Grain Bulk Handlers’ Mwela, questioned the relationship of shareholders of Grain Bulk Handlers and Grain Industries Limited.

They were appearing before Mombasa High Court Judge Florence Macharia.

“In the company registration forms of both Grain Bulk and Grain Industries, some names of the shareholders appear in both documents, are you able to explain,” Bwire questioned Mwela.

He also questioned why some 18 trucks belonging to Grain Industries were loaded with wheat from Grain Bulk premises before the purported day of the auction.

Mwela defended the company, saying Grain Industries are also their clients, who import grains through Grain Bulk Handlers.

Two witnesses of Grain Bulk Handlers also struggled to explain how the company arrived at the figure of Sh200 million for the wheat consignment.

A clear picture that was painted in court was Grain bulk handlers under the chairmanship of Mohammed Jaffer with a scheme to defraud Atta Kenya Ltd registered another company called Grain Industries selling the importer wheat at a away price to its own company.

The hearing of the case is expected to continue.

The post Inside Tycoon Mohammed Jaffer Fraud Case: Grain Bulk Handlers vs Atta Kenya appeared first on Cyprian Nyakundi.

Machakos governor Wavinya Ndeti and her son Charles Oduwale are on crosshairs of Ethics and Anti-Corruption Commission (EACC) for their involvement in a dubious dams project.

Sources reveal that in 2023 Wavinya Ndeti instructed Chief Water Officer Abdullahi Guliye to work with Oduwale and one Salat Osman popularly known as Ali to build 75 dams before the el-Nino rains.

Wavinya was aware that the dams were impossible to complete in such a short time and her intention was to embezzle funds.

When County Water Minister Catherine Mutanu tried to question the project, Governor Wavinya threatened to fire her.

The dams construction work began without any proper tendering or awarding and what shocked many people in both Water and Finance departments is that the rains came with less than a quarter of dams finished but they have already been paid for.

“The governor and her son are the masterminds of this scandal. They have been pocketing millions of shillings from the contractor who is their close associate,” one of the sources said.

Oduwale has been supplying all ICT equipment including software to the county government of Machakos.

Ali’s handles all county air travel using a company called Kayleaf Tours.

“We have received complaints from the public and some county officials about the irregularities in the dams project. We are investigating the matter and we will take action against anyone found culpable,” a source at the EACC said.

The post Fake Dams Scandal Ensnares Governor Wavinya and Son appeared first on Cyprian Nyakundi.

There is trouble at the Kenya Medical Supplies Authority (KEMSA) with allegations that the Chairman Irungu Nyakera is involved in suspicious dealings regarding tender awards.

Nyakera is said to be using his political networks to micromanage happenings at Kemsa, including tender awards and employment in strategic departments.

The board is divided over these allegations, with members including Hezborn Omollo, Bernard Kipkirui, Jane Masiga, and Jane Mbatia.

The CEO of Kemsa Andrew Mulwa reportedly raised concerns about Nyakera’s apparent bias towards companies from his home county, Murang’a.

Firms with directors from Murang’a have allegedly been awarded contracts, including Unico Essentials Ltd, Alencure Logistics Ltd, Quillar Enterprises Ltd and Appropriate Essential Supplies Ltd.

James Wanjiru, who reportedly has connections at William Ruto’s State House and is a business ally of Kiharu MP Ndindi Nyoro is also involved in these contracts.

Mulwa has raised issues regarding a tender for the procurement of medical supplies worth KES 641 million, which Nyakera allegedly influenced.

Firms that were disqualified at the evaluation stage were shortlisted and eventually considered for this tender.

The tender was meant specifically for people with disabilities (PWDs) but firms without PWDs as directors were awarded the contracts.

One of the firms involved in the suspicious tender awards is Amor Express Ltd whose director is Jackline Osiema.

Amor Express Ltd was awarded KES 40 million despite initially being disqualified at preliminary stages of the tendering process.

Balmer Healthcare Ltd was also awarded KES 10 million despite having trouble with its bidding documents.

It is worth noting that there are concerns that the same people are operating some firms involved in the Kemsa tender awards and that the same Indian manufacturer, Amazing Rubber Products Pvt Ltd, is supplying surgical gloves to multiple firms.

The public is calling for transparency and accountability in the handling of funds meant for the procurement of medical supplies and equipment.

The Ethics and Anti-Corruption Commission (EACC) is currently investigating the matter, and members of the public have been urged to come forward with any information that could help with the investigations.

EACC has also asked Kemsa to cooperate fully with the investigations and ensure that all necessary documents and information are provided.

The post KEMSA Chairman Irungu Nyakera Manipulating Tender Awards To Companies Associated With His Political Networks appeared first on Cyprian Nyakundi.

The Ndichu twins have ignited a feud with the Central Bank of Kenya (CBK) over-regulation, taking aim at Compliance Director Wafula.

Wapi Pay founder and director Eddie Ndichu launched a verbal attack against CBK Governor Kamau Thugge and Compliance Director Timothy Wafula during a Fintech conference.

Ndichu, one-half of the controversial Ndichu twins, criticized Wafula and CBK, accusing them of lagging in modern regulations.

He expressed frustration that the same individual who previously handled his compliance matters in banking now oversees them in Fintech.

Ndichu’s remarks suggested a belief that Wapi Pay should not fall under CBK regulation, asserting that the institution remains outdated compared to global standards.

He indicated a desire for partnerships with global entities like Mastercard or Visa, lamenting that CBK poses a hindrance.

Despite Ndichu’s criticism, the Central Banker Report Cards, which evaluates central bank performance worldwide, ranked Kenya’s Central Bank eighth globally.

Ndichu’s stance has drawn ire from CBK technocrats, who perceive his demands for preferential treatment unfavorably.

Ndichu’s contentious remarks underscore a broader conflict between fintech innovators and regulatory authorities.

Controversial Twins

In 2021, the Ndichu twins were captured on video beating up a woman who had refused to go home with them following a drinking session.

The ladies, who were allegedly assaulted by Eddie Ndichu and his twin brother Paul Ndichu, came forward to give their side of the story.

Through their uncle, Philip Murgor, the two ladies, Stephanie Murgor and Cheryl Murgor, recounted the ordeal they went through at the hands of the twin brothers.

According to a statement released by their uncle Philip Murgor, the ladies had gone to the hotel to attend a wedding after-party at Emara Lounge, accompanied by their two male friends – Samuel Ramdas and Patrick Koech. Later in the night, as they were having a good time with their friends, Eddie reportedly made an improper pass at Stephanie.

This prompted the 24-year-old lady to ask him if she was the husband of former Citizen TV anchor Janet Mbugua. The question was, however, answered by a lady who was in the company of the two brothers.

“One of the so-called ‘Ndichu Twin Brothers’ dressed in dark clothing made an improper pass at Stephanie, to which she responded; ‘aren’t you the husband of Janet Mbugua?’

The lady who was with the twin brothers then shouted ‘Ex-husband,'” Philip Murgor narrated. A fight broke out, and the brothers beat up the girls.

In the same year, it was revealed that Eddie had been beating his TV personality wife, Janet Mbugua, like a dog.

The beatings were worse than the treatment of a stepchild, and the lovely Janet couldn’t take it anymore, so she ran away for her dear life.

The post Controversial Ndichu twins start a war with CBK over regulation appeared first on Cyprian Nyakundi.

Pariti, a company that claims to be dedicated to matching talented individuals with suitable employers in Africa, has been accused of acting against its own mission.

Reports suggest that the company has been discriminating against pregnant women, prematurely terminating contracts, and intimidating staff by threatening them with dismissal if they do not meet unrealistic targets.

According to sources, the company has been struggling to raise funds, and this has led to a mass exodus of employees.

Since September 2023, the majority of the team has departed.

The exodus began with the entire business development team quitting, followed by employees in other departments, such as operations and engineering.

Some employees left in unclear circumstances, where they appeared to have been coerced or pushed to resign, while others cited a toxic company culture as the reason for their departure.

Reports indicate that employees who have left the company have been threatened with poor reviews or recommendations if any future employers inquire about them.

This raises serious questions about how a company that claims to place the best talent across Africa in different countries can do so when its own internal culture is toxic.

Pariti was founded in 2019 by Yacob Berhane and Wossen Ayele, who are both entrepreneurs and investors with experience in the African tech ecosystem.

It boasts of using artificial intelligence and a network of over 5,000 referrers to source and vet candidates for various roles in startups and enterprises across Africa.

The company has raised a total of $3.35 million in funding from investors such as Harlem Capital, Better Ventures, Fingo, and Purple Elephant Ventures.

Pariti’s clients include over 75 companies in Africa, such as Sanergy, Kubik, and Raise.

Pariti has also partnered with organizations such as Google for Startups, Microsoft for Startups, and Techstars to provide talent solutions for their portfolio companies.

However, these impressive credentials seem to contrast with the allegations of mistreatment and misconduct that have surfaced recently.

It remains to be seen how Pariti will respond to these allegations and whether it will take steps to address the concerns raised by its former employees.

We will continue to monitor the situation and report on any further developments.

The post Capital Squeezed Pariti Hit By Mass Exodus As Employees Expose Toxic Work Culture appeared first on Cyprian Nyakundi.

When the cornerstone for Enaki Town was laid back in November 2018, it was heralded as the dawn of a new era in Nairobi’s real estate landscape.

The ambitious Ksh.10 billion project spearheaded by the prominent Waiyaki family in collaboration with real estate heavyweight HassConsult Real Estate was set to redefine luxury living with grand visions of penthouses, duplexes, apartments and a sprawling ‘spiritual’ garden.

However, fast forward to 2024 and the narrative has taken a stark turn.

Over 100 homeowners who invested in the Enaki Town project during its development stage now stand in the eye of this storm, their voices echoing a chorus of betrayal as they engage in a bitter dispute with the developer, Rosslyn Suites Limited, a company largely owned by HassConsult.

At the heart of the controversy are lease agreements that homeowners allege unfairly curtail their property rights and impose onerous financial burdens.

The crux of their discontent lies in the clauses of the lease agreements introduced post-sale, catching many off guard and leaving them feeling aggrieved.

Among the contentious clauses is one designating HassConsult as the sole letting agent for Enaki Town units, effectively restricting homeowners’ autonomy in leasing out their properties.

The agreements also stipulate fees for leasing out units, even if tenants are secured independently by homeowners.

This, coupled with a requirement for homeowners to pay hefty fees should they wish to withdraw their properties from the rental market, has left many feeling financially shackled and disenfranchised.

Adding fuel to the fire are allegations of delayed project completion, resulting in significant financial losses for investors.

The fluctuating USD/KSHS exchange rate in a volatile market has compounded these losses, exacerbating tensions and fueling distrust among homeowners.

Discrepancies between promised amenities and the final product’s quality have further eroded homeowners confidence in the project.

“They said it would be a smart investment now we can’t even enjoy the amenities we paid for. Access to our own homes is being held hostage. It’s a disgrace to homeowner rights,” says one of the victims.

As homeowners rally against these draconian measures, HassConsult remains conspicuously silent, failing to respond to repeated communication attempts.

The once-promised epitome of luxury living now stands as a stark reminder of the perils homeowners face when developers prioritize profits over people – a symbol of the struggle between corporate might and individual rights.

Homeowners are demanding for accountability and transparency as they seek to salvage not just their investments but the very essence of what Enaki Town was meant to be.

For a comprehensive understanding of the Enaki Town project, please refer to the following documents which provide detailed insights into the development, purchase process and lease agreements.

Enaki Town Brochure

An overview of the envisioned luxury living experience.

Enaki Town Residential Resort Development Information

Detailed information about the resort’s development.

Purchase Process

Step-by-step guide on acquiring a property within Enaki Town.

Agreement for Lease

Contractual terms between the developer and the homeowner.

The post Enaki Town Dream Crumbles As Homeowners Expose Corporate Deceit By HassConsult appeared first on Cyprian Nyakundi.

Narok County is facing serious allegations of corruption involving public funds.

A whistleblower has accused the County Commissioner for Finance, Mr. Naingisa, of authorizing irregular payments to several companies allegedly linked to him.

Payment on Non-existent Footbridge Project

The most concerning allegation involves a payment of Ksh. 18 million made last August to Device Building and Civil Works Ltd, a company allegedly owned by Mr. Naingisa.

This payment was reportedly for the construction of a footbridge in Kenol. However, according to the whistleblower, the footbridge does not exist, and the national government is currently undertaking its construction.

Repeated Offenses and Lack of Investigation

These alleged irregularities are not isolated incidents.

The whistleblower further claims that Betshal Ltd, another company reportedly linked to Mr. Naingisa, has been paid over 16 times by the County government for undelivered services.

Additionally, M&S Ltd, yet another company allegedly owned by the CO Finance, is accused of receiving Ksh. 14 million yesterday, 12th March 2024, for motorcycles that were never delivered and are not expected to be delivered.

Despite these concerning allegations, the whistleblower claims that reports filed with both the Ethics and Anti-Corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) have not been acted upon.

This inaction raises questions about potential collusion between these investigative bodies and Mr. Naingisa.

Urgent Need for Investigation

The seriousness of these allegations necessitates a swift and thorough investigation.

The authorities, particularly the EACC and DCI, must act impartially and transparently to investigate these claims and ensure that those found culpable are held accountable. The public deserves to have faith in the institutions tasked with safeguarding public funds and preventing corruption.

The post Corrupt Narok County Finance Officer Ntiamput Naing’isa Exposed appeared first on Cyprian Nyakundi.

In the heart of Eldoret town, a nefarious gang believed to be led by a high-ranking official within the Uasin Gishu county inspectorate department is wreaking havoc, especially on those who dare to voice dissent against the county administration.

This ruthless gang employs tactics such as espionage, threats, and violence to suppress critics and quash protests.

Its sinister operations were brought to light following the disastrous Finland and Canada education programs that left numerous parents and students stranded.

The primary targets of the gang are those who seek answers and justice from the county regarding the scandal.

Among its victims are a politician, a human rights advocate, and even a magistrate.

Politician Ousted from Meeting

Kipkorir Menjo, a prominent politician who had been outspoken about the education debacle, found himself forcibly removed from a town hall meeting attended by Uasin Gishu Governor Jonathan Bii and Senator Jackson Mandago.

Menjo was accused of aligning himself with the victims, forcing him to flee for his own safety.

“They did not want me to be at the meeting, accusing me of being critical to the administration. I had to take off because they were agitated and they were ready to harm me,” Menjo recalled when speaking to a local daily.

He called on Governor Bii to deal with the rogue officers who have been intimidating and physically abusing the traders and members of the public.

“This is something we have never witnessed and this should be put to a stop. Governor Bii should deal with rogue officers within the inspectorate department who have been intimidating and physically abusing the traders and members of the public,” he added.

Activist Escapes Abduction Attempt

Human rights activist Kimutai Kirui, based in Eldoret, disclosed that he was targeted by the gang and has received death threats.

He narrowly escaped an attempted abduction and shared his encounter with the gang leader.

“I encountered the gang leader when we were dealing with issues related to the street families after their arrest and transfer to a rescue center. I criticized the way these families were being handled, and I was warned to back off or face unspecified consequences,” Kirui explained.

Undeterred, Kirui continued to advocate for reforms within the county enforcement department, such as requiring officers to wear official uniforms and be accompanied by police when conducting their duties

“But I pressed on, requesting for an overhaul of county enforcement department, including wearing of official uniforms when executing their work and be companied by police officers. Then the gang leader and his team started threatening me using goons on social media When the gang leader threatened to kill a magistrate we came out and demanded his arrest,” he added.

As the education airlift issue took center stage, Kirui found himself in the crosshairs of the county enforcement team which was sent to arrest him.

“After the first demonstration, the gang wanted me ejected from a townhall meeting attended by Senator Jackson Mandago and Governor Bii, but parents threatened to walk out. They waited for me and attempted to abduct me and bundle me into a waiting county vehicle but members of the public and the press who filmed the incident foiled the attempt that was led by the senior official in the inspectorate,” he narrated.

Kirui urged the county to stop profiling and intimidating parents who demand their rightful dues.

“The county must cease its practices of profiling and intimidating parents who seek their entitled dues. Threats against the media, aimed at preventing the uncovering of wrongdoing, must cease immediately, as media freedom is a fundamental human right. Equally, threats against civil society organizations should be unequivocally halted,” Kirui asserted.

Governor Jonathan Bii, when approached regarding the escalating situation, pledged to take administrative action against officers implicated in the gang’s activities.

He vehemently denied the existence of an organized gang within the county while announcing plans to equip enforcement officers with new uniforms for clear identification.

“All county askaris will be issued new uniforms for identification purposes, aimed at ending further harassment of traders and the general public,” Governor Bii affirmed.

However, as the citizens of Eldoret town await concrete actions to address this alarming issue, questions linger about the governor’s ability to rein in the unruly elements within his administration.

While promises of administrative action are made, the victims of the gang’s terror continue to live in fear, and their quest for justice remains elusive.

Governor Bii’s leadership will be measured not only by his words but by the swift and effective actions he takes to restore order and ensure that the county’s residents can live without the looming specter of this menacing gang.

The citizens of Eldoret deserve more than just assurances; they deserve the freedom to voice their concerns without fear of reprisal.

The post Eldoret Residents Live in Fear as Governor Bii’s County Gang Unleashes Terror on Critics appeared first on Cyprian Nyakundi.

In the last two years, the Kenyan tech startup scene has faced some serious challenges.

At least eight homegrown startups have shut down, casting a shadow over Kenya’s dreams of becoming Africa’s ICT hub.

The numbers are striking: these startups collectively soaked up a whopping Sh11.2 billion in investment.

But it’s not just about the money; there are deeper issues at play.

One of the most prominent casualties is Twiga Foods, an agri-tech company that raised an astonishing Sh23.4 billion in venture capital.

Despite this, they recently announced layoffs and a 40% cost-cutting strategy, blaming a “funding drought.”

But is it all about funding?

Not quite. Many startups seem to struggle due to issues with their business models and a lack of uniqueness in solving real-world problems.

President William Ruto’s vision of Silicon Savannah is facing a reality check.

Some other notable casualties include Sendy, Gearbox, Zumi, SkyGarden, Notify Logistics, Kune, BRCK and WeFarm.

Sendy, for instance, raised Sh3.9 billion but still had to close down its retail platform and lay off 20% of its workforce.

Gearbox, an engineering technology firm, also downsized, despite having raised Sh730.5 million over nine years.

Zumi, an e-commerce platform, joined the list of casualties, announcing its closure due to a lack of funds, despite raising Sh146.1 million since its inception in 2016.

Last year, five more startups exited the Kenyan market, adding to the concerns.

SkyGarden, despite raising Sh1 billion, couldn’t sustain its operations and had to bow out of the market.

Notify Logistics, after raising Sh45 million, encountered difficulties in the market.

Kune, despite raising Sh146.1 million, had to close down its operations.

BRCK, having raised Sh613.6 million, faced challenges that led to its exit from the market.

WeFarm, despite an impressive Sh4.7 billion in funding, eventually had to close down.

The trend is clear: big funding doesn’t guarantee success if the core idea isn’t strong.

Many entrepreneurs are chasing valuations and buyouts instead of solving tangible problems.

The viability of business models and the ability to provide unique solutions to real-world problems play a pivotal role.

It’s a challenging time for Kenya’s tech scene, but there’s hope that with the right strategies and a focus on solving real problems, the Silicon Savannah dream can still be realized.

The post President William Ruto’s Vision of Silicon Savannah Faces A Harsh Reality Check appeared first on Cyprian Nyakundi.

A prominent city law firm is currently engaged in a legal battle with the Energy and Petroleum Regulatory Authority (Epra) over a fee demand exceeding Sh73 million.

The demand is attributed to the law firm’s representation of the State agency during a contentious dispute involving oil giant Total Kenya and Kenya Petroleum Refineries.

S.M. Kilonzo & Associates Advocates made their initial request for payment in March, arising from their involvement in a case that was ultimately dismissed by the High Court in July 2021.

In a letter dated August 3, 2023, addressed to Epra, the law firm expressed their intention to proceed with the submission of a bill of costs if the outstanding fee note remains unsettled within the next seven days.

At the heart of the matter lay a dispute between Kenya Petroleum Refineries and Total Kenya, centered on compensation for yield shift losses.

These losses stem from the disparity between actual crude processing yields and anticipated yields.

Total Kenya, alongside other oil companies, has demanded in excess of Sh2 billion from Kenya Petroleum Refineries.

The case has been referred to the Energy Regulatory Commission for a final decision.

The law firm is demanding Sh31.5 million as instruction fees alone based on the value of the subject matter and its lawyers’ appearance in court five times since 2017 when the case was filed until its dismissal.

The post Law Firm Demands Sh73 Million in Legal Fees From Epra appeared first on Cyprian Nyakundi.

A recent thread on Twitter by @JelaniMK has exposed how car dealerships and car yards in Nairobi are being used as fronts for money laundering by criminals who have amassed wealth through illegal activities such as corruption, drug trafficking, and fraud.

The thread, which has gone viral, explains the modus operandi of these shady businesses and how they evade scrutiny from the authorities.

Money Laundering through Vehicle dealerships and Car yards. A Thread.
🧵

— Lee (@JelaniMK) September 11, 2023

Over the past 12 years, Nairobi has witnessed an unprecedented proliferation of car dealerships and car yards lining its bustling roads.

This phenomenon has not gone unnoticed, raising questions about its correlation with the alarming surge in public fund embezzlement and other illicit activities.

The connection becomes even clearer when considering the preference for luxury vehicles among the individuals involved in these activities.

A 2019 report on money laundering revealed that criminals are drawn to conspicuous displays of wealth, making flashy cars, ostentatious jewelry, and lavish club expenditures their hallmarks.

Notably, these cars are predominantly purchased with cash.

The Physical Trips

One of the key aspects of this money laundering scheme involves frequent physical trips, primarily because electronically transferring large sums of money tends to raise suspicion with central banks.

The conventional approach is to physically deliver the ill-gotten cash to conduit banks or intermediaries, who subsequently process the payments.

These trips are essential for moving substantial sums, especially to jurisdictions where strict regulations on declaring the amount of money you’re carrying are lacking.

The UAE, for example, imposes a maximum limit of $30,000 for travelers, but this rule is rarely enforced, providing ample opportunities to move significant amounts of money without drawing attention.

How the Scheme Works

The process begins with criminals using their illegal gains to purchase vehicles.

Once these cars arrive at the port, they are swiftly classified as legitimate assets, with little scrutiny into the source of funds.

These vehicles are often registered under company names, adding layers of complexity to ownership structures and making it more challenging for authorities to seize them.

Cash Payments and Scrutiny

Many dealerships willingly accept cash payments, making it difficult to scrutinize the source of wealth of the supposed “buyers.”

The procedure is straightforward: criminals steal a certain amount, schedule multiple trips to destinations like the UAE, deposit the money directly into the dealership’s account, and then await the shipment of their chosen cars.

The use of private jets and helicopters in the aviation industry is crucial here, as it allows these individuals to avoid the scrutiny often associated with commercial flights.

Minimal Scrutiny at Dealerships

In stark contrast to banks, vehicle dealerships worldwide face minimal scrutiny and are not subjected to the stringent anti-money laundering regulations that financial institutions must adhere to.

This lack of oversight provides a haven for criminal entities to operate with relative impunity.

In some cases, dealerships engage in questionable transactions among themselves, ostensibly selling cars to create clean banking records.

Covering Up Transactions

Dealerships may also resort to deceptive tactics, such as claiming to have sold a vehicle without the actual buyer taking possession.

In this scenario, the criminal entity covers up payments for illegal activities, like drug deals.

These transactions are recorded as legitimate car sales, concealing the true nature of the funds involved.

Establishing “Financing Firms”

To further obfuscate their activities, some dealerships establish “financing firms” that ostensibly help clients secure car financing.

These entities add yet another layer of money laundering and client protection. While not all vehicle dealerships are involved in such practices, a significant number in Kenya seem to serve as conduits for concealing the proceeds of crime and embezzled government funds.

Global Scope of the Issue

The conspicuous displays of wealth by individuals driving fancy cars in Nairobi are not unique.

Similar instances have been uncovered in other countries, such as the UK, where the 2017 McMenamy report revealed that the Spanish Kinahan cartel set up networks of garages to launder drug money through car sales.

As the prevalence of money laundering through vehicle dealerships continues to grow, it is crucial for authorities to take decisive action to combat this menace and safeguard the nation’s financial integrity.

The Central Bank of Kenya (CBK) must intensify its efforts to root out this insidious practice, both in Kenya and globally, to protect the financial stability of the nation.

The sight of opulent vehicles on Nairobi’s streets should not obscure the need to address the sources of funds fueling this trend.

The post How Car Dealerships are Used for Money Laundering in Kenya appeared first on Cyprian Nyakundi.

In a significant development, the Anti-Corruption Court Magistrate, Eunice Kagure Nyutu, has issued urgent warrants of arrest for four senior government officials who are key witnesses in the Ksh63 billion Arror and Kimwaer dam case.

These officials are central to the prosecution’s case against former Treasury Cabinet Secretary (CS), Henry Rotich.

The court has directed the Director of Criminal Investigations (DCI) to apprehend and present them in court within an hour.

The individuals facing arrest are Cecilia Kaluka, an official at the office of the Auditor General, Boniface Mamboleo, an employee of the National Environment Management Authority (NEMA), and public servants Mutungu Mwai Wanjohi and Samuel Kimutai Kosgey.

Magistrate Nyutu made her decisive ruling, stating, “The four witnesses are public servants and can be arrested and brought to court. I, therefore, give the DCI one hour to arrest and produce the four in court by 11:46 a.m.”

The order for the immediate arrest of these witnesses came after the court rejected a plea from the state prosecutor, Mr. Obiri.

He had requested an adjournment, citing the absence of formal instructions from his superior, who was yet to be sworn into office.

Magistrate Nyutu firmly asserted, “This court has a duty to ensure matters are heard expeditiously. I find the reasons given by the prosecution, seeking to postpone the hearing dates for this week pending the post-vetting of the incoming DPP, is not justifiable.”

She continued, “This court cannot be held hostage through unverifiable instructions given to the prosecutor by word of mouth. Therefore, the application for adjournment is denied, and furthermore, this court issues warrants of arrest for the said witnesses.”

This latest development underscores the gravity of the Ksh63 billion Arror and Kimwaer dam case and signals the court’s commitment to expeditiously address allegations of corruption involving high-ranking government officials.

The arrests of these key witnesses are expected to shed further light on the case and bring it one step closer to resolution.

The post Four Key Witnesses To Be Arrested in Ex-CS Henry Rotich Ksh63 Billion Dam Scandal appeared first on Cyprian Nyakundi.

A shocking video has surfaced online showing a female judiciary officer raiding a law firm office in Nairobi and attempting to take away furniture and equipment that she claimed belonged to her.

The officer, identified as Hon. J.W Munene, is an adjudicator of the Milimani Small Claims Court.

She was confronted by her former colleagues who tried to stop her from vandalising the office.

The incident occurred on Monday, September 11, 2023, and has sparked outrage and criticism from the public and the legal fraternity.

According to Hon. Munene, she used to operate Wangeci Munene and Co Advocates since 2006 when she set up the law firm with other partners.

She claimed that she had not been paid for her share of the property and assets of the firm and that she had come to reclaim them.

Hon. J.W Munene said that she had no fear of facing any disciplinary action from the Judicial Service Commission (JSC) for her conduct.

“My name is Honourable J.W Munene. I used to operate Wangeci Munene and Co Advocates since 2006 when they set up the law firm, and these are my property. The things, the chairs, and I have come for them because I was not paid for the same. So which offense am I making? Take it to the Judicial Service Commission (JSC), I am ready for any disciplinary action,” she boldly states in the clip.

However, her former colleagues from the firm promptly refuted her claims, accusing her of trespassing and damaging their property.

They explained that Hon. Munene had departed from the firm in 2018 following a disagreement with the other partners, asserting that she held no legal rights to the office’s assets.

They further disclosed that they had reported the matter to both the police and the JSC, emphasizing their expectation for Hon. Munene to be held accountable for her actions.

The video, which was shared on Twitter by a user named Caxstone Kigata, showed Hon. Munene unplugging machines from their desks and trying to cart them away while speaking in tongues and invoking the name of Jesus.

The incident portrayed in the video represents a grave breach of ethics and professionalism by a judicial officer entrusted with upholding the rule of law and delivering justice to ordinary citizens.

An Adjudicator at the Milimani Small Claims Court, Hon. J.W Munene is expected to uphold the highest standards of professionalism and integrity.

Her actions, however, appear to show a blatant disregard for these principles, as she takes matters into her own hands in an attempt to reclaim what she believes is rightfully hers.

One of the most surprising aspects of this situation is Hon. J.W Munene’s confidence that the Judicial Service Commission (JSC) will not take any disciplinary action against her.

Her audacious suggestion that her former colleagues should file a complaint with the JSC raises further questions about the effectiveness of the disciplinary process within the judiciary.

As of now, no official statements have been issued by the JSC or the police regarding Hon. Munene’s case but many Kenyans are eagerly waiting to see how it will be resolved.

The post WATCH: Milimani Small Claims Court Adjudicator Hon. J.W Munene Raids Former Law Firm In Shocking Attempt to Seize Property appeared first on Cyprian Nyakundi.

Andrew Kibe’s YouTube Account Terminated

The YouTube channel owned by social commentator Andrew Kibe has been shut down.

Andrew Kibe had been informing his large fan base that he planned to switch to a different platform once he was done with YouTube.

Although the situation may have changed, it will be intriguing to observe his future actions.

In his most recent statement, Kibe announced his intention to transition to a new platform called Yafreeka.

He also mentioned that he would maintain his interaction with his followers on TikTok, Instagram, Rumble, and X.”

WHAT MIGHT RESULT IN THE TERMINATION OF ACCOUNTS OR CHANNELS?

Andrew Kibe’s YouTube Account Terminated

The post Andrew Kibe’s YouTube Account Terminated appeared first on Cyprian Nyakundi.

Supreme Court Affirms LGBTQ Association Rights

The Supreme Court of Kenya has thrown out an application by Homa Bay Town MP Peter Kaluma that sought to challenge the court ruling.

On the registration of an LGBTQ lobby group and the definition of sex as used in the case.

 

On March 9, 2023, MP Kaluma submitted an application to the Supreme Court.

He requested the court to halt the orders permitting the NGO Coordination Board (the 1st respondent) to enroll LGBTQ community members.

Additionally, the MP challenged the court’s February 24, 2023 ruling, in which it interpreted the term ‘sex’ in Article 27(4) of the Constitution to encompass ‘sexual orientation of any gender,’ encompassing heterosexual, lesbian, gay, intersex, or other orientations.

 Supreme Court Affirms LGBTQ Association Rights And Rejects MP Peter Kaluma’s Challenge

The Supreme Court has rejected an appeal made by Peter Kaluma.

The lawmaker representing Homa Bay Town, in which he contested the rulings of the High Court and the Court of Appeal that permitted the registration of LGBTQ advocacy groups under the NGOs Act.

The Chairman of the Kenya Conference of Catholic Bishops expressed deep disappointment with the recent decision by the Supreme Court of Kenya.

 

This decision dismissed a petition challenging the court’s earlier ruling on February 24.

Which allowed the registration of LGBTQ+ NGOs in Kenya. Archbishop Martin Kivuva Musonde of the Archdiocese of Mombasa believes that this ruling effectively promotes LGBTQ+ rights in Kenya.

On September 13, Archbishop Kivuva claimed that legalizing implies promotion, linking LGBTQ+ associations’ registration to endorsement.

He questioned Kenya’s stance on LGBTQ+ ideologies, citing talks with presidents who disagreed and implied financial influence.

The February 24 Supreme Court decision endorsed LGBTQ+ association rights despite the country’s ban.

This decision faced opposition from Catholic Bishops in Kenya, who considered it destructive and contrary to the natural order.

Interestingly, two judges, Justice Mohamed Ibrahim and William Ouko, dissented from the majority opinion.

Subsequently, Homa Bay MP George Peter Opondo Kaluma’s March 9 petition contested the February 24 ruling.

It argued that the decision permitted associations promoting illegal homosexual acts and expanded the definition of “sex” in Article 27(4) to include “sexual orientation.”

This Supreme Court ruling concluded a decade-long legal battle .

It was initiated when Eric Gitari, representing the National Gay and Lesbian Human Rights Commission (NGLHRC), challenged the head of Kenya’s NGO Board for refusing to register an association with the words lesbian or gay in its name.

ALSO READ:Milimani Small Claims Court Adjudicator Hon. J.W Munene Raids Former Law Firm In Shocking Attempt to Seize Property

The post Supreme Court Affirms LGBTQ Association Rights appeared first on Cyprian Nyakundi.

Kenyans on X (formerly Twitter) are buzzing with reactions over the sizzling hot rumors that charismatic radio presenter Mike Mondo and the fabulous Shiko Nguru could be officially an item.

Mike Mondo himself spilled the beans on this unexpected development with a single, heart-filled Instagram post that featured a cozy and affectionate snapshot of Mike Mondo and Shiko Nguru, leaving fans swooning and speculating about the nature of their newfound relationship.

But wait, some of you might be wondering, who is Shiko Nguru and why is this story such a big deal on social media?

Most netizens recall Shiko Nguru was previously in a relationship with Rama Oluoch, a digital content creator.

Since Mike Mondo’s post with Shiko Nguru, Rama Oluoch has been notably quiet on social media.

His last post was on August 17, 2023, which coincided with the day Mike Mondo shared that heartwarming photo. with Shiko Nguru.

Rama Oluoch and Shiko Nguru were popular for their joint YouTube channel, “Green Calabash,” where they shared their family life and experiences.

However, they broke up in January 2022 and deleted their YouTube channel along with all their shared content.

They share two adorable sons, while Shiko Nguru has a lovely daughter from a previous relationship.

On the other side of this equation, we have the multi-talented Mike Mondo, who is no stranger to parenting himself.

For years, Mike Mondo had one daughter whom he had sired with his old ex.

His most recent partner and latest baby mama, Hellie Queen, recently gave birth to his second child, a daughter.

https://www.instagram.com/p/Cvb-Z6TIoAC/?utm_source=ig_web_copy_link&igshid=MzRlODBiNWFlZA==

Interestingly, just a few weeks after welcoming their first child together in July 2023, Mike Mondo and Hellie Queen dropped enigmatic hints on their Instagram stories, suggesting that the love chapter might be closing for them.

They both posted cryptic messages suggesting that they were back in the dating market.

Well, that was quick!

On her part, Shiko Nguru has not made any social media proclamations about her romantic involvement with Mike Mondo.

Instead, her posts predominantly feature heart-melting photos of her kids.

https://www.instagram.com/reel/CiemUnFqCO0/?utm_source=ig_web_copy_link&igshid=MzRlODBiNWFlZA==

This has triggered an avalanche of questions among their loyal followers.

Is their connection just a blossoming friendship or something deeper?

These are some of the questions that Kenyans on X are asking and hoping to get answers soon.

The post Mike Mondo Sparks Dating Rumors With Rama Oluoch’s Baby Mama Shiko Nguru appeared first on Cyprian Nyakundi.

Recent media claims link billionaire businessman Zakariya Kamal Sufi Abashiek, who holds dual citizenship with Kenya and China, to Al Shabaab’s attack on the Kwa Omollo Bridge Construction site in Lamu last year.

The March 11, 2022 attack killed four Kenyan civilians and one Chinese contractor while destroying a tipper truck and other equipment.

According to sources, Zakariya Kamal provided Chinese-made drones to Al Shabaab, which the militants used to carry out the raid and record the footage.

Medium-altitude long-endurance combat drones with a payload capacity of 345 kg and a flight time of up to 40 hours.

The reports also allege that Zakariya Kamal provided the terrorists with training and technical support on how to operate and maintain the drones.

Zakariya Kamal initially bought the drones from China and then delivered some of them to the Kenyan government as part of a Ksh. 2 billion deal that was issued by the Ministry of Transport and Infrastructure.

By exploiting his network of smugglers and middlemen, Zakariya Kamal was able to redirect some of the drones to Al Shabaab.

Zakariya Kamal: How Suspected Terrorist Supplier Won a Sh2Bn Drone Tender

These claims have linked Zakariya Kamal to a film produced by Al Shabaab on September 14th 2023, which showed militants shooting unarmed innocent citizens in the Lamu LAPSSET program.

How did he escape detection and carry on with his unlawful activities? Who in the government and security services are his allies and defenders?

Where is he now, exactly?

Terrorism and Zakariya Kamal go hand in hand.

He was detained in June 2023 and accused of a number of offences under the Prevention of Terrorism Act, such as joining to a terrorist organisation and providing resources for the commission of terrorist acts.

He was charged with purchasing a range of military hardware from China and transporting it to Mogadishu in three containers.

Zakariya Kamal has become a synonymous name associated with acts of terrorism.

In the month of June 2023, he found himself in the custody of the authorities, facing a litany of charges brought forth under the Prevention of Terrorism Act.

These charges included allegations of affiliating with a terrorist organization and providing resources for the execution of terrorist activities.

His purported misdeeds involved the acquisition of a diverse array of military equipment from China, which he subsequently shipped in three cargo containers to Mogadishu.

This inventory encompassed rifle scopes, fabric rolls intended for military uniform production, portable and collapsible solar panels, military-grade walkie talkies, camouflage attire, night vision goggles, voice-recording pens, spy watches, concealed eyewear, swimming goggles, flashlights with accompanying batteries, and military-standard helmets.

While Somali authorities managed to intercept one of the containers at the port of entry, it is believed that the other two successfully reached their intended destination, falling into the hands of the Al Shabaab group.

The legal proceedings saw Zakariya Kamal presented before Senior Shanzu Principal Magistrate Yusuf Shikanda, who ordered his remand in police custody to facilitate further investigations.

However, the situation took an unexpected turn in July 2023, when he was released on a Ksh.1 million bond, spending a mere month in detention.

This development ignited a storm of indignation and suspicion, with many questioning how an individual accused of such grave offenses could secure bail so swiftly.

Speculation ran rife that Zakariya Kamal might have exploited his financial resources and influential connections to extricate himself from incarceration.

How Tycoon Terrorist Zakariya Kamal Supplied Al Shabaab With Chinese Weapons

Zakariya Kamal, originally born in Kenya but having spent the majority of his formative years in China, pursued studies in engineering and business in the latter country.

His return to Kenya in 2020 marked the establishment of a seemingly legitimate import and export enterprise.

However, beneath this façade lay a malevolent plan to equip the Al Shabaab insurgents, who have long been engaged in a violent struggle against the Somali government and its allies, Kenya included.

As this saga unfolds, we remain committed to tracking this story’s developments and will furnish our readers with the latest information as it emerges.

The post Was Chinese Arms Dealer Zakariya Kamal the Catalyst for Al Shabaab Attack in Lamu? appeared first on Cyprian Nyakundi.

Clearing agents at the port of Mombasa want Kenya Revenue Authority (KRA) to remove a senior manager who has become a pain in their ass.

The traders have appealed to KRA to overhaul its investigation and enforcement team.

The Kenya Freight Forwarders and Warehouse Association (KIFWA) claim the Investigation and Enforcement office has been causing unnecessary delays that are costly to their work.

According to traders, one of the supervisors Abdiakim Omar has been detaining containers to ostensibly conduct a personal verification which at times takes upto to two weeks.

KIFWA argues that the delays mean an extra Sh200,000 in storage charges, a cost that is passed to importers.

“We have been incurring extra costs due to the detaining of our containers which have already been cleared by customs. One of the officers demands a bribe of Sh50,000 per container and failure to part with the cash, the container is detained for 15 days,” KIFWA committee member Emerton Mwakina said.

Mwakina who is a General Manager of Imani Logistics says over 40 of KIFWA members have complained to KRA but no action has been taken.

“We are appealing to KRA to consider overhauling the Investigation and Enforcement team. We have no problem with other offices. And as members we comply with tax obligations as required by law,” he said.

KRA recently began a new policy of opening containers to compute taxes per item instead of per kilogram.

This already importers said has led to increment of cost of cargo with KIFWA saying any delay in releasing containers means another extra charge for traders.

According to port users, Omar has been chest thumping that he is untouchable and has made millions of shillings from the dirty deals which he has used of acquire residential property in Utawala and Donholm areas of Embakasi.

He was initially stationed in Eldoret but was recalled to KRA’s Upperhill office where the department of Investigations and Enforcement is domiciled following similar complaints.

However during the helm of Mburu Githii, Omar was taken to Mombasa where he has been harrasing importers sns clearing agents.

It’s now upto to KRA Acting Commissioner General Rispa Simiyu and Commissioner Investigations and Enforcement Yego to act and safe the situation.

The post Corrupt KRA Officer Exposed For Wreaking Havoc at Mombasa Port appeared first on Cyprian Nyakundi.

Barely 24 hours after we exposed cartels at City Hall in our previous publication “How Top City Hall Official Violated Procurement Laws To Mint Millions”, Nairobi City County Deputy Governor Njoroge Muchiri called for an urgent meeting with fleet management to discuss the matter.

Top on the agenda was the payment of Sh65,015,000 incurred on fuel, oil, and lubricants.

Present in the meeting was the embattled acting County Secretary Jirus Musumba, and Deputy Director in charge of fleet management James Osodo, among others.

Sources who attended the meeting revealed that the DG dressed down Osodo over claims of corruption in the department where even vehicles belonging to individuals are fueled by the county through a cartel of Osodo, Ochieng and Ukoo Mwangi.

After the meeting, sources divulged that heads are set to roll with the duo of Osodo, Ochieng and Ukoo set to be transferred to other departments with the DG promising to bring on board a new team.

It was the DG himself who posted on his Facebook page that he held a meeting with fleet management.

Drivers at city hall are known to work under very difficult situations and mistreatment by Ochieng.

Getting fuel is a problem and Ochieng is known to maniopulate records of fuel consumption.

Drivers claim that when you pump fuel worth Sh5,000, in the records, it is recorded at Sh7,000.

The Sh2,000 difference is reportedly shared among Ochieng, Osodo, and Ukoo.

How top City Hall official violated procurement laws to mint millions

The post Heads To Roll at City Hall Fleet Department appeared first on Cyprian Nyakundi.

A Mombasa-based lobby group is threatening to move to court and then stage major demonstrations in Mombasa over the Likoni floating bridge.

The project done by the immediate former regime was estimated to have cost Sh1.9 billion to complete.

The project was done by the China Road and Bridge Corporation Company which is among the 13 companies that were blacklisted by WorldBank.

In 2009, China Roads and Bridge Corporation was barred for eight years, China state corporation and China Wu Yi were barred for six years, currently constructing Moi International Road, China Geo-engineering Corporation was barred for five years, but currently constructing Mwache Dam in Kwale.

It is part of the reasons the lobby group now wants to seek legal redress, officials said.

Among the issues, local leaders and the lobby group are seeking to solve include the isolation of youth-run and startup companies in the procurement process.

Coast Human Rights Network officials said they will be enjoining Sakawa Agency Limited in the suit to seek justice

Michael Magak one of its key officials said that some companies owned by the Chinese are undermining Kenyans.

“This is a serious matter. A local agency was awarded the tender which must be paid. We will use all means possible so that they get justice,” he said.

According to Legal Notice No. 2001 Executive Order by the President, youth-owned companies, people with disabilities, and women are not supposed to be victimized at the expense of the big companies.

Also at the center of the tender awards is the refusal by Chinese-owned companies to pay Kenyan companies subcontracted with them.

Sakawa Agency Limited, a youth group that was subcontracted by the said Chinese company is already in court battling to be paid a sum of Sh29 million for terminating their contract.

“We were among the several people and companies that were shown doors by the Lizipping project manager who colluded heavily with officials to frustrate us,” the group says.

It has also been established that such Chinese companies win tenders through mischievous methods including bribing top procurement officers and senior executive officers from mother ministries.

George Odidi, a consultant at the agency said they are at the losing end and now want the government to intervene and help them in getting justice.

“We have been struggling in court since 2020 up to now and no justice at all hence the need for help,” he said.

The post Group Threatens Court Action Over Likoni Floating Bridge Project appeared first on Cyprian Nyakundi.