Eastleigh Businessman Accused of Sh296 Million Theft, Money Laundering Scandal

In what prosecutors are describing as one of the most audacious cases of employee theft in recent times, a businessman has been charged with stealing a staggering Sh296 million from a city shopping mall over a period spanning seven years.

Mohamed Osman Abdile, who worked at Mega Shopping Mall in Eastleigh, appeared before court Monday to face a litany of charges that paint a damning picture of systematic looting and elaborate money laundering schemes designed to conceal the source of the stolen funds.

The 30 criminal counts against Abdile read like a thriller: conspiracy to commit a felony, stealing by servant, money laundering, and being in possession of proceeds of crime.

Each charge represents another thread in what investigators allege was a carefully woven web of financial deception.

According to court documents, the theft occurred between January 2018 and February 2025, with Abdile allegedly using his company Fatzam Enterprises Limited to transfer money to various companies and individuals in a bid to hide where it came from.

The prosecution painted a picture of a man who allegedly exploited his position of trust. The money belonged to business mogul Abdi Mohamed Ali and came into Abdile’s possession by virtue of his employment at the mall, the court heard.

Sophisticated Money Laundering Operation

But the theft allegations are only part of the story. Prosecutors allege that Abdile went to extraordinary lengths to legitimize his ill-gotten gains.

The Director of Public Prosecutions charged him with money laundering for concealing the source of over Sh116 million held in accounts at Kenya Commercial Bank, Absa Bank and Equity Bank. Additionally, he was indicted for possessing more than Sh107 million believed by police to be proceeds of crime.

In one incident detailed in court, police on March 12, 2024 discovered Sh4.7 million in an account at KCB Eastleigh Branch registered under Fatzam Enterprises Limited, the company Abdile operated with fellow director Hussein Ibrahim Barre.

Ghost Director and Pending Arrests

Barre, who is jointly charged in the case, did not appear in court for plea taking, raising questions about his whereabouts. The accused faces 17 counts of money laundering and 10 counts of being in possession of proceeds of crime, according to court records.

Investigators say the scheme involved multiple accomplices, some of whom remain at large. Police are yet to arrest other conspirators for arraignment, the court was told.

Bond Granted Despite Magnitude

Despite the gravity of the charges and the massive sums involved, the prosecution surprisingly did not oppose Abdile’s application for release on bond.

He was freed on Sh3 million bond with an alternative cash bail of Sh2 million after entering a not guilty plea to all 30 charges.

The Eastleigh Context

The case comes at a sensitive time for Eastleigh’s business community, which has been working to shake off negative associations and position itself as a legitimate economic powerhouse in Nairobi.

Eastleigh, often dubbed “Little Mogadishu,” is home to several major shopping complexes including the newly opened Business Bay Square Mall, a Sh25 billion development that has transformed the area’s commercial landscape. The neighborhood is a major contributor to Nairobi’s revenue through its bustling wholesale and retail trade.

This theft case, however, serves as a stark reminder that even in Kenya’s most vibrant commercial districts, internal fraud can flourish when oversight mechanisms fail. The seven-year duration of the alleged theft raises uncomfortable questions about financial controls and audit procedures at Mega Shopping Mall.

As the case proceeds through the courts, attention will focus on how an employee could allegedly steal such colossal amounts over such an extended period without detection. The trial is expected to reveal details about the mall’s internal controls, the methods allegedly used to siphon funds, and the network that may have facilitated the laundering of the stolen money.

For now, Abdile remains free on bond as he prepares to fight 30 criminal charges that could see him spend decades behind bars if convicted. The case also shines a spotlight on the need for robust financial oversight in Kenya’s retail sector, where trust and internal controls are often the only barriers between businesses and catastrophic losses.

The matter will be mentioned in court for further directions on the trial date.