What was supposed to be a lifeline for thousands of residents living in Nyamira County’s informal settlements has instead become yet another case study in how public funds are systematically looted under the watch of county governments.
A forensic trail now shows that Sh235 million in donor funding, allocated under the Kenya Informal Settlement Improvement Project II (KISIP II), was tampered with and partially siphoned off through an account held at Equity Bank, raising serious questions about both county leadership and banking oversight during Governor Amos Nyaribo’s tenure.
The funds, backed by the World Bank, were earmarked for upgrading roads, drainage systems, street lighting, and securing land tenure for vulnerable communities.
But instead of transforming settlements, investigators discovered unauthorised withdrawals amounting to at least Sh21.2 million, carried out quietly and without donor approval.
According to documents seen by investigators, the withdrawals were made by county officials and project coordinators, bypassing strict financial controls that govern donor-funded projects.
The money was allegedly redirected to purposes unrelated to the project a clear breach of financing agreements.
The scheme began to unravel when Housing and Urban Development Principal Secretary Charles Hinga flagged suspicious transactions and ordered an immediate freeze of the account. Project activities were halted, effectively stopping further bleeding of public funds.
In an internal response, Equity Bank’s management acknowledged irregular activity, confirming that the transactions pointed to possible internal fraud, triggering parallel investigations within the bank. The revelation has placed the spotlight not just on Nyamira County officials, but also on how such withdrawals slipped through standard banking safeguards.
The scandal deepens the crisis facing Governor Nyaribo’s administration, already under scrutiny over governance failures and corruption claims. Critics argue that the looting of donor funds reflects a broader culture of impunity, where money meant for the poorest citizens is treated as easy cash.
The Ethics and Anti-Corruption Commission (EACC) has since taken over the probe, with investigators now examining potential collusion between county officials and bank staff. Asset tracing, recovery proceedings, and possible prosecutions are expected.
For Nyamira residents, the betrayal is devastating. For Kenya’s donors, it is another warning sign. And for county governments across the country, it is a stark reminder that even donor money is not safe from looters when accountability collapses.
