Bungoma, Kenya – The Ethics and Anti-Corruption Commission (EACC) has arrested and interrogated three directors of Ramagon Construction Company over allegations of a multi-million shilling fraud involving Matili Technical Institute in Bungoma County.
The suspects—Abdi Barre Abdi, Hassan Barre Abdi, and Nagenye Mohamoud Dahir—were apprehended in Bungoma town and detained for over fifteen hours at EACC offices in Bungoma and later in Nairobi. They were later released on police bail pending further investigations.
According to the EACC, the three directors are implicated in a conspiracy to defraud the public by inflating a KSh 29 million construction tender to KSh 59 million. The commission alleges that Ramagon Construction received overpayments for services not rendered, in collusion with senior government officials.
Investigators also revealed that the directors fraudulently claimed an additional KSh 9 million, which led to a highly questionable public auction of a Matili Institute vehicle used for student driving training. The vehicle, valued at KSh 5.4 million, was allegedly sold for a mere KSh 1.2 million.
“This case demonstrates an alarming level of collusion between private contractors and public officials,” said an EACC official familiar with the investigation. “The public lost substantial funds, and critical institutional resources were misappropriated.”
The alleged fraud has left Matili Technical Institute in a precarious financial position, sparking fears among stakeholders and local leaders over a potential closure of the institution. Community leaders have called on the government to take urgent action to safeguard the institute’s future and recover lost assets.
The EACC has since filed a case in court seeking to invalidate the KSh 59 million claim by Ramagon Construction, labeling it as fraudulent and non-existent. The Commission has also indicated that it will recommend criminal prosecution of the suspects and pursue legal avenues to recover misappropriated public assets.
As investigations continue, the scandal has ignited renewed debate over the need for stronger oversight in public procurement and tendering processes, particularly within the education sector.
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