Senior Principal Magistrate Fatuma Rashid found three members of the same family guilty on all six counts related to the diversion of Ksh113.2 million from a Kisumu wholesale distribution business.

The prosecution said the alleged scheme operated between October 2020 and July 2021, during which customer payments and wholesale goods were diverted from the company.

Court evidence indicated that the company’s accountant manipulated the accounting system to create fictitious transactions and conceal missing funds.

Prosecutors showed that the diverted payments were transferred to bank and mobile‑money accounts linked to the other two accused rather than to the firm’s official accounts.

A forensic audit and document examination established that Ksh113,227,529 could not be accounted for, supporting charges of conspiracy, money laundering and possession of crime proceeds.

Witnesses, including company employees, customers, bank officials and forensic examiners, testified about how the transactions were carried out.

The court rejected the defence’s argument that the transfers were legitimate business arrangements, concluding the evidence demonstrated a coordinated fraud scheme.

All three were convicted of conspiracy to commit a felony, money laundering and acquiring or possessing proceeds of crime; the former accountant also faced theft and fraudulent accounting charges.

Sentencing has been scheduled for 29 October 2026.