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Retired Commissioner Isiah Osugo In Trouble Over Sh1.8B Theft At The Prison



A file photo of retired Prisons Commisioner General Isiah Osugo Photo|NMG

Auditor General Edward Ouko has exposed sh 1.8billion scam by Kenya Prisons department.

Auditor General’s report exposes how Kenya Prisons paid phoney suppliers, made double payments for goods and services, procured fake bulletproof vests and jackets.

Last month, EACC unearthed attempts to steal Sh4.8 billion through fictitious security contracts by top prison officials and the Matiangi led Interior ministry.

This questionable payouts were dispatched during the tenure of Isaiah Osugo, The now retired Commissioner General of Kenya Prisons.


Osugo has been holding the position for more than a decade.

According to Ouko’s report,304.4 million paid at Prison headquarters ,on behalf of various prisons, for food rations could not be traced or accounted for.

Ouko report has also exposed two suppliers who were paid Sh2.4 million by prison headquarters, on behalf of Kibos Medium Prison did not deliver the food.

“Indications are that the payments were irregularly made to recipients who did not supply food to the prison,” reads part of Ouko’s report.

Auditor General’s report revealed that Osugo swindled Sh12.4 million using forged pending bills for Kisumu Main Prison.


Ouko also discovered cases of double payments totalling Sh22.5 million in connection with

According to auditor general’s report, Usugo led department double paid non existing suppliers of Naivasha, Eldoret and Kakamega Prisons and Shikusa Borstal.

“However, verification at the prisons revealed massive irregularities as the purported suppliers had never been contracted to supply food and there were no deliveries or receipts at the three prisons,” reads part of the Auditors report.

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Osugo and other senior prison bosses have been clearing multimillion fake pending bills.

The report reveals that bills totalling to 288.6million reflected in the headquarters’ records could not be traced to the records of the prisons where food rations were allegedly delivered.


Osugo also left cooked pending bill records worth 18.6 million for food rations. Auditor general’s report indicates the had already been paid before.

Usugo led Prisons department is also on spot for procuring 300 substandard bulletproof and 300 bulletproof vests for Sh22.2 million and Sh20.9 million respectively.

“Audit inspection carried out revealed that the body armour received do not have ballistic panels and cannot be used to protect staff against rifle fire, ammunition, knife stabs and sharp or pointed instruments,” reads part of Ouko’s report.

In mid March this year, EACC  unearthed a Sh4.8 billion scandal executed via fictitious security contracts.

The Audit also reveals that the Osugo led department double paid bills worth Sh2 million to the officer-in-charge of Naivasha Maximum Prison for construction of staff houses.


Prisons also used 128.6 million to pay firewood suppliers countrywide without proof of delivery notes.

Ouko report also raises a red flag on the award of a tender for construction of a perimeter wall at the Eldoret Prisons for 24.8 million.

Auditor generals reveals that prisoners were engaged to construct the same wall despite Osugo dispatching additional Sh7.5 million on the project.

Osugo’s department also oversaw the loss of 1.7 million on a tender for the installation of CCTV surveillance cameras at the Naivasha GK prison.

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Prisons headquarters paid 12 million for 190 five megapixels cameras, but the audit report revealed that only 158 cameras were accounted.


“The audit further established that 52 cameras costing Sh 4.5 million installed at the reception and hospital blocks are defective and, therefore, not functioning,” reads part of Ouko’s Audit report.

The audit report also revealed that the contractor supplied eight Power Distribution Boards instead of 30, resulting in a loss of 22 others costing Sh 550,000.

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