Sh5.4 million security contract lands company director in court

A security company director is facing fraud-related charges over a Sh5.4 million public contract after investigators alleged that his firm continued receiving full payments despite deploying fewer guards than required.

The director was arraigned before the Chief Magistrate’s Court in Kisii following investigations by the Ethics and Anti-Corruption Commission (EACC) into a security services tender awarded to a technical institute in Keroka.

According to the EACC, the company was awarded a security services contract worth Sh257,000 per month for two financial years, bringing the total value of the contract to Sh5,448,000.

However, the anti-graft agency alleges that the contract was not implemented as agreed.

“Investigations established that the company was awarded a security services contract valued at Sh257,000 per month for two financial years, amounting to Sh5,448,000,” EACC said.

The commission further alleged that despite a reduction in the number of guards deployed under the contract, payments continued to be made at the full contractual rate.

Investigators also alleged irregularities in the tendering process.

According to the EACC, a Tax Compliance Certificate submitted by the company during the procurement process was allegedly falsified and did not originate from the Kenya Revenue Authority system.

The commission subsequently forwarded the investigation file to the Office of the Director of Public Prosecutions (ODPP), which approved charges against the company director.

The director is facing charges of procurement fraud, uttering a false document and fraudulent acquisition of public property.

In a statement, the EACC said the prosecution forms part of ongoing efforts to safeguard public resources and hold individuals accountable for alleged procurement-related offences.

The accused appeared before the Chief Magistrate’s Court in Kisii on Tuesday, where he denied all the charges.

He was released on a cash bail of Sh1 million or an alternative bond of Sh2 million with two sureties of a similar amount.

The court also directed him to surrender his passport pending the hearing and determination of the case.

“The suspect was this morning arraigned before the Chief Magistrate’s Court in Kisii, where he pleaded not guilty to all the charges,” EACC said.

The matter is scheduled for mention on July 6, 2026, when the court is expected to issue further directions.