• 14 other suspects being sought by police.
• EACC said the companies did not offer any services nor supplied goods.
Former Garsen MP Dunson Mungatana has been arrested by the Ethics and Anti-Corruption Commission over graft claims.
Mungatana is among seven individuals who were arrested on Thursday morning for fraudulent acquisition of public property, uttering false documents and dealing with proceeds of crimes.
The seven are also accused of having received illegal payments from Kilifi County government. Police are in pursuit of 14 other individuals, the EACC said.
Others arrested with Mungatana are Benaya Mugavana, Lucy Wanjugu, Josephine Muramba, John Kalume, Paul Mwazo and Ebrahim Zia.
Those being sought are roads inspector Lennox Mwadzoya, chief officer medical services Timothy Malingi, senior internal auditor Jacob Kazungu, senior accountant Johnson Nyamawi and Dickson Mwagone, a county official.
Other are Daniel Ngumu, Sarah Kamau, Anne Muthoni, Mary Kamau, Kennnedy Irungu, Stephen Ngunzi, Hellen Mutisya, Kangai Mwangi and Samwel Macharia.
According to EACC, it had been reported that the county fraudulently paid Sh51.56million to six private companies.
The companies include Daima One Enterprise, Zohali Services limited, Makegra Supplies Limited, Kilingi Investment Company Limited, Leadership Edge Associated Limited and Johazi Investment company.
EACC said the companies did not offer any services nor supplied goods to the county government of Kilifi despite receiving the payments
"Investigations have established that the Local Service Orders used were fake as they did not originate from the county government," read part of a statement.
The Commission said the county officials processed and approved payments for goods and services not delivered.