Three family members have been convicted by a Kisumu court over a fraud scheme involving Sh113.2 million belonging to Such Enterprises Limited.
Senior Principal Magistrate Fatuma Rashid found Christopher Joseph Okal, Grace Minayo Okal and Victor Anyumba guilty on all six counts they faced following a prosecution led by Principal Prosecution Counsel Douglas Moseti.
The trio was charged with conspiracy to commit a felony contrary to Section 393 of the Penal Code, money laundering under the Proceeds of Crime and Anti-Money Laundering Act, and acquisition and possession of proceeds of crime.
Okal, who worked as an accountant at Such Enterprises Limited, faced additional charges of stealing by servant, fraudulent false accounting and stealing under the Penal Code. The charges stemmed from the alleged diversion of customer payments and wholesale goods worth Sh113,227,529 between October 2020 and July 2021.
The prosecution presented witnesses, including company employees, customers, bank officials, forensic examiners and investigating officers, to demonstrate how the fraud was carried out.
The court heard that Okal manipulated the company’s accounting system by creating fictitious transactions and diverting customer payments into bank and mobile money accounts linked to his co-accused. Forensic document examination and other evidence showed that Okal used his access to alter company records and conceal transactions. An audit report established that Sh113,227,529 could not be accounted for.
The prosecution further told the court that customers had been instructed to deposit payments for goods into accounts associated with the accused instead of the company’s official accounts.
The accused maintained that the transactions were legitimate business arrangements. However, the court rejected their explanation, finding that the evidence demonstrated a coordinated scheme to defraud the company and conceal the proceeds.
Magistrate Rashid agreed with the prosecution’s argument that Okal orchestrated the scheme and used accounts belonging to Grace Minayo Okal and Anyumba to receive diverted sales proceeds. The court also found Grace Minayo Okal and Anyumba guilty of stealing and participating in money laundering activities linked to the diverted funds.
After evaluating the prosecution’s evidence against the defence, the court concluded that the case had been proved against all three accused persons on every count.
They were subsequently convicted under Section 215 of the Criminal Procedure Code, with sentencing scheduled for October 29, 2026.
