A suspect linked to a sophisticated cyber fraud scheme that led to the loss of Sh11.4 million from a leading microfinance institution has been arraigned in court.
Detectives from the Banking Fraud Investigation Unit (BFIU) arrested and charged Seth Mwabe Okwanyo, who is also known as Seth Onyango Odhiambo, for allegedly orchestrating a fraudulent scheme that that led to siphoning of millions from the institution’s systems.
According to court documents, the shocking incident occurred on July 16, 2025, when a total of 38 fraudulent transactions were executed through the institutions system, resulting in a financial loss of Sh11,410,165.
Investigations conducted revealed that the transactions bypassed the company’s internal visibility and control measures, raising serious concerns about security breaches.
A formal complaint lodged by the microfinance institution prompted swift investigations, which revealed that while the transactions were successfully processed to recipients, they were conspicuously missing from the institution’s internal records.
The detectives concluded that the hackers had deliberately erased both system and database logs to cover their tracks.
Further investigations uncovered that the unauthorized installation of a java application within the system, which enabled the suspect to manipulate the system to not only steal the funds but also launder them through various accomplices.
Following his arrest, Okwanyo was presented before court, where he faced multiple charges, including Unauthorised Access to a Computer System, Computer Fraud, and Money Laundering.
He pleaded not guilty to all 20 counts. The court granted him bail on a bond of Sh1.5 million or a cash bail of Sh500,000, pending the hearing and determination of the case.
The matter is scheduled for mention on March 3, 2026, as authorities intensify investigations to identify and arrest additional suspects believed to be part of the cybercrime syndicate.
The authorities have emphasized on their commitment to strengthening cybersecurity enforcement and safeguarding financial institutions from the rising digital attacks.
