A Nairobi court has arraigned Seth Mwabe Okwanyo over an alleged Sh11.4 million cyber fraud that targeted a microfinance institution, in what detectives describe as a carefully planned digital breach carried out in a single day.
Prosecutors told the court that dozens of transactions were processed through the lender’s system and key records wiped out, pointing to possible manipulation of internal controls. The suspect denied all charges and was released on bond as the case moves forward.
In a statement posted by DCI Kenya on Wednesday, the agency said, “Detectives from the Banking Fraud Investigation Unit (BFIU) have arrested and arraigned cyberfraudster Seth Mwabe Okwanyo, aka Seth Onyango Odhiambo, for orchestrating a fraudulent scheme that siphoned off Sh11.4 million from a leading microfinance institution.”
The DCI said the arrest came after the lender lodged a formal complaint over a major system breach. “This action follows a formal complaint lodged by the Microfinance institution, detailing a shocking incident that occurred on July 16, 2025,” the statement said.
Investigators said the entire scheme unfolded within hours. “On that day, a total of thirty-eight (38) fraudulent transactions were executed through the institutions System, resulting in a loss of Sh11,410,165.”
According to detectives, the transactions went through without being detected by the company’s monitoring tools. “These transactions circumvented the company's internal visibility and control measures, raising serious concerns about security breaches.”
The Banking Fraud Investigation Unit said it moved swiftly once the report was made. “Dedicated investigators immediately sprang into action, uncovering that these thirty-eight transactions were absent from the microfinance institution records yet were flagged as successful to the recipients.”
That gap in records suggested a deliberate attempt to interfere with digital evidence. “This discrepancy indicated that the hackers had deliberately erased both system and database logs to cover their tracks.”
Further checks on the lender’s system pointed to suspicious software activity. “Further investigation revealed the unauthorised installation of a Java application in the system.”
Detectives believe the program was used to carry out and conceal the alleged theft. “With this malicious app, Seth Mwabe Okwanyo was able to manipulate the system to not only steal the funds but also launder them through various accomplices.”
Before the court, the accused faced several counts tied to cybercrime and financial offences. “In court, Seth faced multiple serious charges, including Unauthorised Access to a Computer System, Computer Fraud, and Money Laundering.”
He denied the accusations. “He entered a plea of not guilty to all twenty counts.”
The court allowed his release under set terms. “The court granted him bail, allowing his release on a bond of Sh1,500,000 or a cash bail of Sh500,000.”
The case will be mentioned again soon. “The case is slated for mention on March 3, 2026, as authorities continue with their investigations to unravel this intricate web of cybercrime.”
Although the DCI did not name the affected institution, the incident has drawn attention to gaps that may exist within digital financial systems. The reported execution of 38 transactions in one day and the alleged wiping of logs have sparked fresh concern about cyber security in the sector.
The DCI said inquiries are ongoing as officers work to determine the full scope of the alleged fraud and track the movement of the money. Detectives are also seeking to identify other possible suspects linked to the transactions.
As part of its public awareness campaign, the agency urged Kenyans to share information through its reporting channels. “#FichuaKwaDCI. Call 0800 722 203 (Toll-free) or WhatsApp at 0709 570 000 to report anonymously. Usiogope!”
The phrase “Usiogope”, meaning “Do not be afraid” reaffirms the agency’s call for confidential tips from members of the public as investigations continue.
