South Sudan National Held in Nairobi Over Sh2.1 Million Fraud

A South Sudanese national is facing criminal charges in Nairobi after prosecutors accused him of defrauding a Kenyan businessman of more than Sh2 million through a scheme involving the registration of a company branch in South Sudan.

John Tong Boul Majuach was presented before the Milimani Law Courts on Monday, where the prosecution sought to have him answer to allegations of obtaining money by false pretences and handling proceeds of crime.

The case was mentioned before Principal Magistrate Daisy Mutai, but plea taking was postponed after Majuach’s lawyer requested additional time to explore an out-of-court settlement with the complainant.

In line with Kenya’s growing emphasis on alternative dispute resolution in suitable criminal matters involving financial disputes, the court allowed the request and deferred plea taking until June 6, 2026.

Pending the next appearance, the accused will remain in custody at Kilimani Police Station.

According to court documents, Majuach allegedly obtained Sh2.1 million from businessman John Stephen Njoroge Macharia after claiming he could facilitate the registration of a branch of Nairobi Projectors Limited in South Sudan.

Investigators allege the representation was false and that the accused knew he lacked the ability or authority to deliver the promised services. The alleged fraud is said to have occurred on various dates between May 30 and June 3, 2023.

The prosecution has also slapped the suspect with 13 additional counts related to the acquisition and use of proceeds of crime, significantly escalating the legal jeopardy he faces if the charges proceed to trial.

The case adds to a growing number of cross-border business fraud investigations involving promises of investment opportunities, company registrations and government-linked facilitation services in East Africa. Law enforcement agencies have in recent years warned Kenyan entrepreneurs to exercise caution when engaging intermediaries claiming to possess special access to government offices or business registration systems in neighbouring countries.

Authorities have increasingly pursued financial crime suspects under both traditional fraud provisions and anti-money laundering laws, allowing prosecutors to target not only the alleged deception itself but also the movement and use of funds believed to have been obtained unlawfully.

When the matter returns to court on June 6, the magistrate is expected to determine whether a settlement effort has been successful or whether Majuach will formally take plea and the case proceed to full hearing.

The outcome could determine whether the dispute is resolved through compensation and negotiation or advances into a lengthy criminal trial involving multiple financial crime counts.