Shocking: Nairobi Man Faces Charges in Sh 12.5M Housing Fraud Scheme

A businessman from Nairobi has been charged with fraudulently acquiring over Ksh 12.5 million through deceptive practices linked to a fictitious performance bond associated with a multi-billion shilling affordable housing initiative in the Makuyu Constituency.

Jacob Okumu Anyumba, who operates at Risknet Insurance Agency Limited, appeared before Milimani Principal Magistrate Caroline Mugo, where he pleaded not guilty to the allegations. The charges stem from an incident on December 13, 2024, where Okumu is accused of defrauding Elvin Leware, representing Dumpken Enterprises Limited, of Ksh 12,573,000.

He allegedly misrepresented his ability to secure a performance bond valued at Ksh 1.87 billion, which was necessary for a government construction contract. The prosecution argued that Okumu intentionally provided false information, leading the complainant to believe that the bond would be processed, thus facilitating the release of the significant funds.

Additionally, he faces a second charge of conspiracy to defraud, as it was revealed that between August 1, 2024, and January 17, 2025, he collaborated with unidentified accomplices to mislead Dumpken Enterprises Limited with similar false claims regarding his ability to arrange the performance bond.

Following the proceedings, Okumu was granted bail, set at Ksh 3 million or an alternative cash bail of Ksh 1.5 million, with the case scheduled for mention on June 11, pending pre-trial developments.