Detectives arrest University drop out for allegedly hacking microfinance siphoning Ksh11Million

Detectives from the Banking Fraud Investigation Unit (BFIU) have arrested and arraigned former Meru University student Seth Mwabe Okwanyo for allegedly orchestrating a fraudulent scheme that siphoned off Ksh11.4Million from a leading microfinance institution.

The 26-year-old self-trained cybersecurity engineer arrest follows a formal complaint lodged by the Microfinance institution, detailing a shocking incident that occurred on July 16, 2025.

DCI stated that a total of thirty-eight (38) fraudulent transactions were executed through the institutions System, resulting in a loss of Ksh11,410,165.

The transactions circumvented the company’s internal visibility and control measures, raising serious concerns about security breaches.

DCI said investigators immediately sprang into action, uncovering that the thirty-eight transactions were absent from the microfinance institution records yet were flagged as successful to the recipients. This discrepancy indicated that the hackers had deliberately erased both system and database logs to cover their tracks.

ALSO READ:

Stima Sacco launches Mpawa Insurance Brokerage to expand member services

Further investigation revealed the unauthorised installation of a Java application in the system. With this malicious app, Seth Mwabe was able to manipulate the system to not only steal the funds but also launder them through various accomplices.

In court, Seth faced multiple serious charges, including Unauthorized Access to a Computer System, Computer Fraud, and Money Laundering.

He entered a plea of not guilty to all twenty counts. The court granted him bail, allowing his release on a bond of Ksh1,500,000 or a cash bail of Ksh500,000.

The case is slated for mention on March 3, 2026, as authorities continue with their investigations to unravel the intricate web of cybercrime.

By Obegi Malack

Sharing is caring!