Businessman Charged For Using President Ruto’s Project to Defraud Company Sh12M

A Nairobi businessman has been charged with defrauding a company Sh12.5 million by exploiting President William Ruto’s affordable housing initiative in an elaborate fake bond scheme.

Jacob Okumu Anyumba, who operates under Risknet Insurance Agency Limited, appeared before Principal Magistrate Carolyne Nyaguthii Mugo at Milimani Law Courts on Monday, facing charges of conspiracy to defraud and obtaining money by false pretense.

The court heard that between December 8 and 13, 2024, Anyumba allegedly received Sh12,573,000 from Elvin Leware of Dumpken Enterprises Limited under fraudulent circumstances.

According to prosecution evidence, Anyumba falsely claimed he could secure a performance bond worth Sh1.87 billion, which he said was necessary for a government-awarded tender to construct affordable housing units in Makuyu Constituency – part of President Ruto’s flagship affordable housing program.

The prosecution alleges that Anyumba misled the complainant into believing the massive bond was a requirement to carry out the government tender, claims that were knowingly false.

“The accused exploited the government’s affordable housing initiative to target unsuspecting businesspeople seeking legitimate opportunities in the construction sector,” a source familiar with the case said.

Anyumba’s defense lawyer told the court that his client had been cooperating with police investigations and had been reporting regularly for the past three months without fail.

The lawyer requested a modest cash bail of Sh100,000, noting that Anyumba is a father and sole provider for his family.

However, the prosecution, while not opposing bail, urged the court to consider the seriousness of the charges when setting bond terms given the substantial amount involved.

Magistrate Mugo granted Anyumba release on a Sh3 million bond with an alternative cash bail of Sh1.5 million, significantly higher than the defense’s request.

The matter has been scheduled for plea hearing on June 11, 2025, as investigators continue building their case against the businessman.