A damning corruption scandal at Kenya’s National Treasury has come to light, with the High Court ordering two officials to return over Ksh39 million they unlawfully pocketed through unauthorised allowances and perks.

The ruling, delivered on Thursday, June 4, by Lady Justice Lucy Mwihaki of the Anti-Corruption and Economic Crimes Division in Nairobi, followed a two-year investigation by the Ethics and Anti-Corruption Commission (EACC).

The court found that the two Treasury employees — a male and a female officer — manipulated outdated and revoked government circulars to award themselves multiple payments under various illegal allowances, including task force, extraneous, entertainment, and facilitation categories.

“The payments were neither approved by the Salaries and Remuneration Commission (SRC) nor legally justifiable under any current government framework,” the court noted.

How They Did It

According to EACC, the scheme spanned from January 2020 to June 2022, when the two officers used duplicated and unauthorised circulars to claim overlapping and inflated allowances. Despite clear advisories from SRC, which holds constitutional authority under Article 230, the officials sidestepped oversight and enriched themselves with taxpayer money.

Court's Ruling & Refund Orders

• The male official was ordered to refund Ksh20,318,000. Of this, Ksh11,078,601 had already been frozen in his bank accounts, with the remaining Ksh9.2 million to be paid in cash.

• The female official must return Ksh18,862,000, including Ksh8,953,988 in frozen assets and Ksh9.9 million to be paid out-of-pocket.

EACC Reacts

The EACC welcomed the court’s decision, calling it a landmark win in the fight against economic crimes.

“This judgment sends a clear message: public office is not a personal ATM,” the EACC said in a statement. “We remain committed to tracing and recovering every shilling stolen from Kenyans.”

The matter was first flagged in July 2022 after multiple whistleblowers raised the alarm over suspicious financial activity within the Treasury.

Why This Matters

The case underscores the critical role of compliance with SRC circulars in ensuring accountability in public service. It also reflects growing public demand for transparency and a government that actively punishes abuse of office.

With the clock ticking on public patience over corruption, this ruling offers a reminder that even high-ranking government officials are not above the law.