The Directorate of Criminal Investigations (DCI) has launched investigations into a Chinese national accused of orchestrating a massive Ksh170 million banking fraud targeting a Nairobi-based construction company.
According to documents filed before the DCI Banking Fraud Unit, the suspect allegedly used forged documents to open a fake bank account, which he then used to divert funds intended for government infrastructure projects.
Reports indicate that the man presented falsified letters of authorisation and fake board resolutions, which enabled him to appoint himself as a company director and manipulate internal payment systems. Using the fraudulent credentials, he opened an account that received payments from government agencies, including the Kenya Rural Roads Authority (KeRRA), funds that were meant for legitimate construction contracts.
The elaborate scheme came to light after a company audit exposed irregularities in the accounts that were receiving payments from state projects. Preliminary investigations revealed that the fraud took place in 2020, during the COVID-19 pandemic, when the firm’s legitimate directors were stranded abroad and unable to return to Kenya.
Taking advantage of their absence, the suspect allegedly activated the fake account and began diverting funds. A forensic audit later confirmed that the signatures used to open and operate the account did not match those of the genuine directors.
One of the company’s directors, who has already recorded a statement with investigators, denied any involvement in the scheme. He maintained that no board meeting or resolution had approved the creation of the disputed account, insisting that all official payments from government agencies were to be processed through the company’s approved bank channels.
The director further urged the DCI to act swiftly, expressing fears that his identity may have been misused in the fraudulent transactions.
Meanwhile, the Chinese suspect has filed a counterclaim at the High Court in Nairobi, seeking millions in compensation, arguing that the company owes him unpaid salaries and reimbursements for expenses he allegedly incurred on behalf of the firm. His lawyers claim that the company is winding up its Kenyan operations and relocating abroad, making it difficult to recover his dues without judicial intervention.
The case will be mentioned on October 29, when the court is expected to give further directions. In the meantime, a court order has frozen the disputed account as investigations continue.
