Treasury Officials Ordered to Refund Ksh39M in Fake Allowance Scandal

(Photo Courtesy: Treasury Building In Nairobi) 

Two senior officials at the National Treasury have been caught unlawfully pocketing Ksh39.1 million by awarding themselves fake allowances. 

The money was received without legal approval and against existing rules on government payments.

According to the Ethics and Anti-Corruption Commission (EACC), the two misused outdated and revoked circulars to claim task force, entertainment, facilitation, and extraneous allowances. 

These circulars had already been replaced, meaning the payments were not allowed under the current laws.

Investigations revealed that between January 2020 and June 2022, the officials received overlapping allowances without the consent of the Salaries and Remuneration Commission (SRC), which is responsible for setting and approving all public officers’ payments. 

The two also used fake and duplicated circulars to enrich themselves unlawfully.

The High Court, led by Lady Justice Lucy Mwihaki, ruled that the officials must return the full amount. 

The male official has already had Ksh11 million frozen in his bank account and must pay the remaining Ksh9.2 million in cash.

 The female official had Ksh8.9 million frozen and must repay another Ksh9.9 million.

The court found that both knowingly broke the law and acted against SRC’s advisories, which are legally binding under the Constitution. 

The judgment confirmed they were fully aware they were not entitled to the payments, yet chose to take public money for personal benefit.

The EACC welcomed the court’s decision, calling it a key victory in fighting corruption and recovering stolen funds. 

The matter first came to light in July 2022 after public complaints reached EACC, triggering a deep investigation into illegal allowances in the Treasury.

This case highlights how some government officials misuse their positions to pocket taxpayers’ money through dishonest schemes.

SOURCE