EACC wins Sh12.6 million recovery suit against former Homa Bay Assembly clerk

EACC wins Sh12.6 million recovery suit against former Homa Bay Assembly clerk

The case followed investigations into the transfer of Sh12,571,166.50 from the Assembly’s salary suspense account to a joint Equity Bank account held by Achieng and Obonyo, who are married.

The Ethics and Anti-Corruption Commission (EACC) has secured a court order requiring former Homa Bay County Assembly Clerk Bob Kephas Otieno and two others to repay Sh12.57 million in public funds that were fraudulently paid out through the Assembly’s salary suspense account between 2015 and 2017.

In a judgment delivered on October 16, 2026, Justice Benjamin Musyoki ordered Otieno, Lillian Achieng Aloo and David Obonyo to jointly and severally repay the money, together with interest at court rates from the date the case was filed until full payment.

The court also awarded the EACC the costs of the suit after finding that the payments made to Achieng and Obonyo were unlawful and unsupported by evidence of goods supplied or services rendered to the county government.

The case followed investigations into the transfer of Sh12,571,166.50 from the Assembly’s salary suspense account to a joint Equity Bank account held by Achieng and Obonyo, who are married.

According to the EACC, the transfers were made between December 24, 2015, and December 22, 2017, when Otieno was the Assembly Clerk and accounting officer.

“The payments were presented as salaries despite Achieng not being an employee of the Assembly or the Homa Bay County Government,” the Commission said.

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Achieng was a teacher employed by the Teachers Service Commission (TSC), while Obonyo worked as the Business Growth and Development Manager at Equity Bank’s Homa Bay branch during the period under investigation.

The court heard that the joint bank account had remained dormant since it was opened in 2006 but began receiving large payments in 2015. The money was transferred through the bank’s suspense account following instructions from the Assembly, and Obonyo later withdrew funds from the joint account.

The EACC argued that neither Achieng nor Obonyo was entitled to receive the money as a salary and that the payments were not supported by proper procurement records.

During the case, Otieno and the two other defendants denied wrongdoing, arguing that the payments were for services provided to the Assembly by Damila Enterprises, a business owned by Achieng and Obonyo.

They claimed the business had supplied goods and services, including catering for funeral services following the deaths of three Assembly members: Boaz Ondiek, Monica Amolo and Jessica Owidi.

Otieno told the court that the payments were made to the couple’s joint account on Obonyo’s instructions because the business had tax issues. He also argued that some of the money came from the county government’s executive arm, over which he had no control.

However, the court found that the defendants had failed to provide sufficient evidence showing that the claimed work had been completed and that the payments were justified.

The judge noted that although the defendants claimed that about Sh6 million had been paid for the three funeral services, the documents presented showed a total of Sh7,106,890 for the services. The defendants failed to explain the remaining Sh5,464,276.50 of the total amount received.

The court also found that the alleged direct procurement deals lacked key supporting records, including tender documents, evaluation committee minutes, necessary approvals, approved budgets and procurement plans.

The judge ruled that the existence of contracts alone did not prove that the work had been done or that payment was due.

The court further found that Otieno, as the Assembly’s accounting officer, had a duty to ensure public funds were properly managed and paid only to those entitled to receive them.

The judgment stated that “the transfers to Otieno following payments to the other defendants raised concerns about his role in the transactions”.

The court rejected the explanation that the money was repayment of loans, noting that no evidence had been presented to show that such loans existed.

In finding all three defendants liable, the judge cited Article 226(5) of the Constitution, which holds public officers responsible for losses arising from the unlawful use of public funds, and Section 203(1)(a) of the Public Finance Management Act, which provides for personal liability for losses caused by fraudulent or corrupt conduct or negligence.

The court also referred to Section 51 of the Anti-Corruption and Economic Crimes Act, which provides for compensation for losses caused by corruption or economic crimes.

The final orders required the defendants to repay Sh12,571,166.50 jointly and severally, with interest from the date the suit was filed until full payment, and to meet the costs of the case.

The EACC said it remains committed to protecting public resources and ensuring that those responsible for the loss or misuse of public funds are held accountable.