A Nairobi court has rejected an application by the prosecution seeking to detain a university student for 20 days over alleged involvement in a cyber fraud scheme that cost a leading betting company Ksh 11.4 million.
The suspect, Seth Mwabe Okwanyo, was arraigned under a miscellaneous application in which investigators sought additional time to finalize inquiries into the matter.
While dismissing the request, Magistrate Benmark Ekhubi cautioned the student against interfering with witnesses or breaching the terms of his release.
“I find that the application lacks merit in terms of denying the suspect bond. It is evident that he has no control over the aspects the investigating officer seeks to probe. I therefore decline the request and admit the suspect to a bond of Ksh 1 million or, in the alternative, a cash bail of Ksh 500,000,” ruled the magistrate.
Okwanyo was arrested on August 30, 2025, at his apartment in Tatu City. The court was told he is under investigation for unauthorized access with intent to commit an offence under the Computer Misuse and Cybercrime Act.
According to a letter dated July 25, 2025, and addressed to the Director of the Banking Fraud Investigation Unit, the betting firm reported that on July 16, 2025, its systems were hit by a sophisticated fraud attack. A total of 38 transactions worth Ksh 11,410,165 were allegedly initiated through a Diamond Trust Bank account using the Pesalink platform, bypassing the company’s internal security controls.
Investigators describe the case as a complex cyber scheme. Okwanyo, who works as an independent cybersecurity consultant, offers services such as vulnerability assessments, penetration testing, and IT risk evaluations to banks and payment service providers. The state alleges he exploited his professional expertise to facilitate the fraud.
In an affidavit, Investigating Officer CI Julius Cheruiyot claimed Okwanyo was “heavily involved” in the transactions, specifically by supplying a fraudulent Telegram bot application with instructions that enabled the siphoning of funds. The state further alleges that he personally benefited from the fraudulent scheme.
