The recent revelations surrounding the fraudulent activities of Joe Kariuki’s 51 Capital have once again spotlighted the murky dealings enabled by NCBA Bank, a financial institution owned by the influential Kenyatta family.
Documents tabled in court expose a complex scheme involving fraudulent transactions and money laundering, which have left farmers grappling with devastating losses.
At the center of the scandal is a contract between 51 Capital and the National Cereals and Produce Board (NCPB).
Signed on March 31, 2022, the agreement saw 51 Capital supply soil conditioner, diatomaceous, ostensibly to help reduce high soil acidity and improve productivity.
However, the truth is far more sinister. Investigations reveal that the product, procured at a mere KSh 200 per kilogram, was sold to NCPB at an exorbitant KSh 1,700 per kilogram, enabling the fraudulent firm to rake in a staggering KSh 205.2 million.
The funds were funneled through 51 Capital’s account at NCBA Bank, Prestige Branch, raising serious concerns about the bank’s role in facilitating these questionable transactions.
The account, numbered 4746630018, was instrumental in processing payments, casting doubt on NCBA’s compliance mechanisms.
The same bank was previously implicated in the infamous NYS scandal, where billions of shillings were siphoned off through dubious deals.
Its repeated entanglement in such schemes suggests either a willful blindness or outright complicity in enabling financial crimes.
The fraudulent activities didn’t end with inflated pricing.
Farmers were duped into believing they were receiving quality fertilizer, only to be supplied with a soil conditioner that was largely ineffective for their agricultural needs.
This left them with massive losses, while 51 Capital and its collaborators pocketed millions.
Suspended NCPB Managing Director Joseph M. Kimote and Corporation Secretary J.K. Ngetich, who signed the contract on behalf of the parastatal, have been implicated, highlighting systemic corruption within the board.
The revelations also bring to light how NCBA Bank played a crucial role in laundering the proceeds of this scheme.
The bank’s reputation has been steadily tarnished by its involvement in scandals, with critics pointing to its failure to implement robust anti-money laundering policies.
The swift code (CBAFKENXXXX) linked to the account has further drawn scrutiny, with questions arising on why the bank did not flag the suspicious transactions.
This oversight enabled Joe Kariuki, a businessman with a known criminal past, to execute his fraudulent activities with ease.
Furthermore, the involvement of powerful individuals in shielding such schemes cannot be ignored.
The Kenyatta family’s ties to NCBA raise the possibility of undue influence, with critics arguing that the bank’s high-profile ownership shields it from thorough regulatory scrutiny.
The bank must answer why it consistently appears at the center of financial scandals, and the public deserves to know the extent of its complicity. Unless concrete action is taken, these schemes will continue to thrive, leaving ordinary Kenyans to bear the brunt of systemic corruption.
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