Kenya Ports Authority finance manager Patrick Nyoike has been arrested alongside his wife Jacinta and a ports clerical officer - Isaac Obunga - over Sh214.5 million irregular payments.
The Office of the Director of Prosecutions had earlier on Sunday directed that the three, alongside Nyoike's brother Alfred Hinga and Nyali Capital be charged over various offences ranging from abuse of office and dealing in suspect property.
Nyoike, who is among the 10 former and current managers at KPA to have applied for the position of KPA managing director, that is still vacant, is accused of making irregular payments amounting to Sh214.5 million to Nyali Capital Limited, a company associated with him.
This is a blow to Nyoike, who was touted as one of the front runners, as criminal charges instituted against him will slow his race towards the big seat.
Nyoike and Vincent Sidai, the General Manager Infrastructure and Development, were by last week giving each other a run for their money over the position.
The Ethics and Anti Corruption Commission has been investigating allegations over irregular payments between October 2014 and March 2017.
“Wanyoike had interests in the company, with his wife, Jacinta and brother Hinga, were working as GM and Director respectively,” said Haji.
Nyoike is accused of using his office to improperly confer a benefit of 214 million, by irregularly facilitating the definition of Nyali Capital Limited which was not one of KPAs suppliers as a vendor in the KPA vendor portal without the requisite authority.
Obunga is accused of, despite knowing that there was no contractual relationship between KPA and Nyali Capital Limited, irregularly defining the company as a vendor in the portal.
EACC regional manager, Mutembei Nyaga, confirmed that Nyoike, his wife, brother and Obunga had already been arrested and will be charged at the Mombasa anti corruption court.
"We have them in our custody. They are being held at Central Police Station and will face charges in the morning, Monday," Nyaga told the Star.
Haji said there were only letters of undertaking signed by KPA officers guaranteeing that KPA would subtract and remit fund to the account.
Another suspect to face charges is Peter Ndichu Kinyanjui, Director NCL.
They will face conspiracy to commit an offence, with Nyoike facing abuse of office charges, failure to disclose private interest to his principal and dealing with suspect property.
“Wanyoike facilitated Nyali Capital’s Limiteds Micro finance business to finance the KPA suppliers, Local Purchase Orders and Local Service Orders and thereafter utilized the KPA system to have the principal and the interest from the same suppliers remitted to Nyali Capital Limiteds account by the KPA. It is therefore clear that he abused his office by receiving payments directly from KPA,” said Haji.