Nairobi, Kenya (Daily Report KE) — A suspect has been arraigned in court over an alleged Sh11.4 million cyber heist targeting a leading microfinance institution, in what investigators describe as a sophisticated breach involving system manipulation and money laundering.
Detectives from the Directorate of Criminal Investigations’ Banking Fraud Investigation Unit (BFIU) arrested Seth Mwabe Okwanyo, also known as Seth Onyango Odhiambo, following investigations into fraudulent transactions executed on July 16, 2025.
38 Fraudulent Transactions
According to investigators, a total of 38 unauthorized transactions were processed through the institution’s system, resulting in a loss of Sh11,410,165.
The microfinance institution filed a formal complaint after discovering that the transactions had bypassed internal monitoring and control mechanisms.
Investigators established that the transactions were missing from the institution’s official records but were reflected as successful on the recipients’ end — raising red flags over possible system tampering.
Alleged System Manipulation
Detectives say preliminary forensic analysis revealed that system and database logs had been deliberately erased to conceal the fraudulent activity.
Further investigations uncovered the unauthorized installation of a Java-based application within the institution’s system. Authorities allege the application enabled the suspect to manipulate transaction records, facilitate the transfer of funds and channel the money through accomplices.
The case has highlighted growing concerns over cybersecurity vulnerabilities in financial institutions amid rising cases of digital fraud.
Court Proceedings
The suspect was presented in court facing multiple charges, including:
- Unauthorised Access to a Computer System
- Computer Fraud
- Money Laundering
He pleaded not guilty to all 20 counts.
The court granted him release on a bond of Sh1.5 million or an alternative cash bail of Sh500,000.
The matter is scheduled for mention on March 3, 2026, as investigations continue.
