PROFIT Programme Sh1.57b fraud: Details of finance scheme at centre of EACC probe

The Ethics and Anti-Corruption Commission (EACC) has arrested suspects as it investigates the alleged fraudulent disbursement of Sh1.57 billion from a National Treasury-funded programme designed to expand access to finance for poor rural households and small-scale farmers.

EACC detectives on Tuesday, August 18, arrested nine suspects over the alleged embezzlement and fraudulent disbursement of KSh1,569,582,338.20 under the Programme for Rural Outreach of Financial Innovations and Technologies (PROFIT).

PROFIT was implemented by the National Treasury with funding from the International Fund for Agricultural Development (IFAD) and was designed to improve access to financial services among poor rural households and small-scale producers.

According to EACC, investigations found that the KSh1.569 billion was fraudulently disbursed from the National Treasury Development Account to the programme before being channelled to 23 private entities, 15 business names and eight companies for goods and services that investigators say were never supplied or rendered.

“EACC investigation established that Ksh1.569 billion was fraudulently disbursed from the National Treasury and subsequently channeled to 23 private entities, 15 business names and 8 companies for goods and services that were never supplied or rendered. The program which was intended to facilitate small-scale farmers access to affordable financing was implemented between 2013-2014 and 2023-2024 financial years,” said EACC.

“The Commission investigations established that the program officials used false and forged documents to account for funds and opened an authorized KCB bank account in the name of profit program through which Ksh175 million was received, laundered and embezzled with substantial portion withdrawn in cash.”

The graft watchdog further said it had also established financial links between programme officials and some of the private entities that received the funds.

Nine suspects were arrested on Tuesday and are expected to be presented before the Milimani Law Courts on Wednesday.

EACC said it forwarded its investigation file to the Director of Public Prosecutions (DPP) after completing the inquiry.

According to the integrity watchdog, the DPP approved prosecution of 20 public officials, companies and company directors.

The charges approved include unlawful acquisition of public property, abuse of office, money laundering, acquisition of proceeds of crime and uttering false documents, among other offences.

The commission has also directed 11 other suspects to present themselves at the EACC Integrity Centre in Nairobi or the nearest EACC office for processing.

In addition, the integrity watchdog said it would pursue the recovery and forfeiture of public funds and assets established to have been acquired through corrupt conduct or other unlawful means.

According to IFAD, PROFIT was established to contribute to financial-sector reform in Kenya while expanding access to financial services for poor rural households.

Its activities included supporting financial products such as savings and remittance services, community infrastructure loans, value-chain financing, medium-term agricultural financing, index-based insurance and health insurance.

The programme targeted groups including smallholder farmers, pastoralists, artisanal fishers, women, landless labourers and young people, particularly in rural areas, including arid and semi-arid regions.

Its broader objective was to increase the incomes of rural households by improving productivity in smallholder farming and rural enterprises.

IFAD records put the total cost of the PROFIT project at US$83.22 million, with US$29.91 million provided by IFAD.

The financing structure also included US$2.75 million from the Alliance for a Green Revolution in Africa (AGRA) and US$50 million from the local private sector.

The KSh1.569 billion (US$12.11 million) currently under investigation by EACC is the amount the commission says was fraudulently disbursed from the National Treasury Development Account to PROFIT and subsequently channelled to private entities.

PROFIT's intended beneficiaries were people who often face difficulties accessing conventional financial services.

IFAD says the programme operated across rural Kenya, with particular attention to areas with high poverty and limited financial access.

Its interventions included mechanisms for rural finance and value-chain financing intended to enable farmers and other rural economic actors to obtain financing, manage assets, market their produce and create employment opportunities.

An IFAD supervision report from 2018 shows that the programme was designed to reach 800,000 smallholder farmers, artisanal fishermen, pastoralists, women, landless labourers and young people.

At the time, the programme was using several financial mechanisms, including a risk-sharing facility and credit facility, to expand lending to rural economic actors.

The programme's implementation, however, was not without challenges.

IFAD's 2018 supervision report records delays in implementation and notes that the programme had previously been classified as a problem project before subsequent interventions sought to accelerate implementation.

IFAD says it has invested US$455.09 million in 20 programmes and projects in Kenya, with the total cost of those projects reaching US$980.31 million.

Its investments have focused on smallholder farmers and value chains including dairy, aquaculture, livestock and cereals, as well as rural finance and natural-resource management.

In June 2025, IFAD and the Kenyan Government also signed a US$126.8 million financing commitment for the Integrated Natural Resources Management Programme, an eight-year initiative targeting more than two million rural people and focusing on food security, incomes and climate resilience.

The overall programme cost was put at US$262.8 million, with contributions from IFAD, the Green Climate Fund, the Government of Kenya, the Global Environment Facility, private-sector actors and project participants.