Kenya Maritime Authority Official Arrested Over Sh40M Insurance Tender Fraud

The official was arrested in an operation which also targeted two insurance brokers believed to have participated in the insurance scam.

EACC said the official was apprehended in Naivasha where he had attended training and escorted to EACC Integrity Centre Offices in Nairobi.

Confirming the operation, EACC Spokesperson Eric Ngumbi revealed that Henry Mwasaru, the Assistant Director and Head of Human Resources and Administration at the Kenya Maritime Authority (KMA) is accused of being involved in the award of a medical insurance tender in contravention of the procurement law and regulations.

Mwasaru was taken into custody on Tuesday during a meticulously coordinated operation.

The crackdown also targeted two insurance brokers suspected of facilitating the fraudulent scheme. Investigators allege that Mwasaru collaborated with Bevaline Lundu, KMA’s Head of Supply Chain Management, to manipulate the tender process and unlawfully award the contract to a favoured insurance agency in violation of procurement laws.

After the search operation in their respective residential premises and homes, the three were taken to EACC Offices in Nairobi and Mombasa were they were interviewed and recorded statements.

They were later released pending finalisation of the probe.

EACC said the operation, which was pursuant to court orders, yielded valuable evidentiary material that will support the ongoing investigations.

Investigations commenced after the Commission, through its Lower Coast Regional Office in Mombasa, received a complaint on September 30, 2024, regarding an awarded insurance tender.

The Commission is intensifying its focus on tenders for staff medical insurance in public institutions, which are increasingly believed to be the channel used as a conduit for embezzlement of public funds.

“The outcome of the ongoing investigation will inform the next course of action, which may include prosecution and recovery of any public funds fraudulently paid from public coffers,” Ngumbi said.