Home News Court Orders Treasury Officers to Refund Ksh.39M in Illegal Allowances

Court Orders Treasury Officers to Refund Ksh.39M in Illegal Allowances

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  • Two National Treasury officials received Ksh.39 million in unauthorised payments.
  • The cash was under unclear allowances, like facilitation and entertainment.
  • The court ruled they knew they had no right to the money.
  • Both were ordered to refund millions, part in cash and part from frozen accounts.
  • EACC also won the case costs, and interest will be added until the money is fully paid.

In a strong ruling delivered on June 4, Lady Justice L.M. Njuguna found that Robert Theuri Murage and Doris Nafula Simiyu, both officers at the National Treasury and Planning, had wrongly pocketed over Ksh 3 9 million in fake allowances. The cash was issued between January 2020 and June 2022 without the necessary green light from the Salaries and Remuneration Commission (SRC).

The judge stated clearly that the two either knew or had good reason to know they were not allowed to get that money. She pointed out that the payments were illegal and had no lawful backing, especially since they ignored SRC advice under Article 230 of the Constitution.

“The Defendants in receiving the allowances knew or had every reason to believe that they were not entitled to them… This court would not hesitate to find that the Defendants received the allowances fraudulently and illegally. I so find,” ruled Justice Njuguna.

Millions to Be Paid Back – With Interest

According to the court’s orders, Mr. Murage must return a total of Ksh. 20.3 million. Out of this, Ksh.11 million will be recovered from his Equity Bank account, and the rest will be paid in cash. Meanwhile, Ms. Simiyu has been told to refund Ksh 18.8 million, including Ksh 8.9 million frozen in her National Bank account.

Besides returning the full amount, the two will also pay interest on the money at court rates until it’s all recovered. The Ethics and Anti-Corruption Commission (EACC), which handled the case, was also granted full costs of the suit.

This decision strengthens the power of the SRC’s role in salary approvals and follows a past Court of Appeal ruling that declared any money paid outside SRC advice is illegal and must be returned.