Prison officer’s property frozen in stolen funds case

Lady Justice Esther Maina during a past court session/ NMG

Nairobi Kenya May 13-The High Court has ruled that two houses in Nairobi suspected to have been purchased using funds stolen from the Department of Correctional Services be preserved. 

The funds are alleged to have been siphoned from the payment of the supply of sugar and rations that were never delivered.

Justice Esther Maina ordered the freezing of an apartment in Komarock area in Nairobi, which was purchased for Sh4 million and registered under the name of Moses Juma Sirengo.

Another house in Nairobi purchased for Sh8.5 million was also frozen in addition to a total of Sh1.2 million belonging to Sirengo held in two different accounts at Housing Finance Company of Kenya (HFCK).

The freeze comes almost a month after the High Court allowed the Ethics and Anti-Corruption Commission (EACC) to preserve parcels of land, seven cars and a house in Nairobi worth Sh17.5 million belonging to another prisons official, suspected to have benefitted from tenders worth Sh257 million between 2012 and 2016.

Justice Maina issued orders preserving the funds and the houses, pending the conclusion of a probe by the EACC.

“That the orders shall subsist for a period of six months in line with the provisions of Section 56(3) of the Anti-Corruption and Economic Crimes Act,” the Judge said.

The anti-graft body said it is investigating claims of conflict of interest at the prisons and investigations have so far unearthed cases where companies were paid for goods they failed to delivered.

The EACC said it was looking into Joseph Kariuki Mwangi who trades as Josil General Supplies ltd, Maureen Ndungwa Mwikya whose company is Reenn East Africa Company, Eric Kipkurui Mutai of Unique Supplies as well as Sirengo.

The probe so far revealed that Kariuki and Mwikya were paid Sh12 million and Sh4 million, respectively for food and rations allegedly supplied to prison facilities. 

They claimed to have supplied sugar to four prison facilities but nothing was delivered.

The officers in charge have attached affidavits saying none of the items were supplied. 

Money was released to the companies’ bank accounts, some of which were transferred to Sirengo’s bank accounts of HFCK.

Sirengo later purchased the house from HFCK in Komarock for Sh4 million and another one for Sh8.5 million.

The EACC said the officials are aware of the investigations and might transfer or withdraw the funds before the probe is completed or dispose of the houses.

Court documents stated that Sirengo is still holding a total of Sh1.1 million in two different accounts.

Last month the court was told that Mutai was paid Sh257 million between 2012 and 2016, for supplies allegedly made to the Prisons.

The official is the sole proprietor of seven companies registered during the period and using the said companies. 

He got the funds allegedly through a fictitious supply of food and ration to the department of Corrections.

The companies include Unique Supplies, Homex Logistics enterprises and Hygienic Ventures. 

From the payments, Mutai allegedly purchased the parcels of land in Nyaribari Chache in Kisii County, Kipchimchim in Kericho County and another property in Nairobi.

He also acquired the seven motor vehicles, all valued at Sh30 million.

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Nasra Nanda

Nasra Nanda

Nasra Nanda is a Senior Associate in Dentons Hamilton Harrison and Matthews, a leading law firm in Kenya.

Gregor Pannike

Gregor Pannike

Gregor Pannike is the founder and managing director of Agema Analysts.

Liz Lenjo

Liz Lenjo

Liz Lenjo is the Founder and Managing Consultant of MyIP Legal Studio.

Angela Kioi

Angela Kioi

Angela Kioi is a legal compliance expert, negotiator and ADR practitioner.



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