Detectives from the Directorate of Criminal Investigations (DCI) have arrested and arraigned a suspected cybercriminal accused of masterminding a fraud scheme that cost a leading microfinance institution more than Ksh11.4 million.
In a statement issued on Wednesday, February 11, the DCI said the suspect allegedly took advantage of vulnerabilities within the institution’s systems, carried out dozens of covert transactions, and attempted to cover his tracks by erasing digital evidence.
The agency noted that investigations were launched after the microfinance institution filed a formal complaint over suspicious activity detected in its network.
Suspected Hacker Arraigned After Ksh11.4M Microfinance Scam. Photo: Courtesy.
According to the DCI, the incident occurred on July 16, 2025, when 38 fraudulent transactions were processed through the institution’s system, leading to a loss of Ksh11,410,165.
The transactions reportedly bypassed internal monitoring and control measures, raising serious concerns over a possible security breach.
The DCI said that after the complaint was lodged, detectives from the Banking Fraud Investigation Unit launched forensic investigations to trace the suspicious transactions.
Investigators discovered that the 38 transfers did not appear in the institution’s records despite being successfully received, suggesting system logs had been deliberately erased to conceal the fraud.
Further inquiries revealed the suspect allegedly installed unauthorized software to access and manipulate the institution’s transaction systems while masking the fraudulent activity.
The suspect was arraigned in court to answer several charges connected to cybercrime and financial fraud.
He was released on bail after the court set a bond of Ksh1.5 million or an alternative cash bail of Ksh500,000.
The matter is scheduled for mention on March 3, 2026, as investigations remain ongoing.
