Thursday, February
12, 2026 - 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.
This action follows a formal complaint lodged by the
Microfinance institution, detailing a shocking incident that occurred on July
16th, 2025.
On that day, a total of thirty-eight (38) fraudulent
transactions were executed through the institution’s System, resulting in a
loss of Sh11,410,165.
These transactions circumvented the company's internal
visibility and control measures, raising serious concerns about security
breaches.
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.
This discrepancy indicated that the hackers had deliberately
erased both system and database logs to cover their tracks.
Further investigation revealed the unauthorised installation
of a Java application in the system.
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.
In court, Seth faced multiple serious charges, including
Unauthorised Access to a Computer System, Computer Fraud, and Money Laundering.
He entered a plea of not guilty to all twenty counts.
The court granted him bail, allowing his release on a bond
of Sh1,500,000 or a cash bail of Sh500,000.
The case is slated for mention on March 3rd, 2026, as authorities continue with their investigations to unravel this intricate web of cybercrime.
The Kenyan DAILY POST
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