Two former National Youth Service (NYS) senior officials have been convicted in a high-profile corruption case involving fraudulent payments that led to the loss of Ksh 791 million. Milimani Chief Magistrate Wendy Kagendo found Samuel Wachenje, the former Director of Finance, and Hendrick Nyongesa Pilisi, the Principal Supply Chain Management Officer, guilty of breaching trust by authorizing unauthorized payments.
Court records reveal that the fraud took place from December 1, 2014, to June 5, 2015, at NYS headquarters in Nairobi. Wachenje and Pilisi reportedly bypassed oversight protocols, failing to obtain the required Ministerial Tender Committee (MTC) approval, which led to substantial financial losses. “The two accused, breached trust by approving payments without the necessary MTC approval, leading to a loss of Ksh 791 million,” Magistrate Kagendo stated. Evidence demonstrated that many payments were grossly inflated or made for undelivered goods and services.
Witnesses described how fraudulent entries were created in the Integrated Financial Management Information System (IFMIS) by adding extra zeros to inflate amounts tied to 25 transactions. Additionally, falsified Local Purchase Orders (LPOs) were attached to payment vouchers to complete the fraudulent transactions.
The prosecution showed that a total of Ksh 791,385,000 was funnelled into accounts belonging to companies under businesswoman Josephine Kabura Irungu: Form Homes Builders, Reinforced Concrete Technologies, and Roof and All Trading. These funds were deposited into accounts at Family Bank’s KTDA branch and later withdrawn in cash.
Further testimony from road construction experts revealed significant overcharges. Engineer Peninah Mwangi testified that the actual cost of materials for the Kibera road project was Ksh 78,857,835, compared to the inflated Ksh 791 million paid, revealing a discrepancy of Ksh 712,527,165.
Prosecutor Jalson Makori led the case, calling 41 witnesses, including former NYS Senior Deputy Director-General Adan Harakhe and State Department Chief Finance Officer Nixon Oborah. The court found that Wachenje and Pilisi abused their positions to facilitate the unauthorized payments, allowing funds meant for NYS projects to be misappropriated.
