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Exposed: How Businessman Siphoned Millions from KNH Into private Company 

Exposed: How Businessman Siphoned Millions from KNH Into private Company


In yet another revelation, a businessman, Eric Nguku Mbiu, and his company, Escobar Kenya Limited, have had their bank accounts frozen by the High Court. They are alleged to have diverted a staggering 35 million Kenyan Shillings from Kenyatta National Hospital (KNH).

The Asset Recovery Agency (ARA) brought this case to light, claiming that Mbiu siphoned off a total of 35,441,587 Kenyan Shillings from KNH. This money was originally meant to repay staff loans at the hospital. Astonishingly, when the alleged theft was uncovered, only 15 million Kenyan Shillings remained.

ARA suspects that Mbiu is part of a syndicate involved in a complex money laundering scheme. The money was disguised as payment for supply delivery, installation, testing, and commissioning of interventional radiology at KNH. However, further investigations unveiled that these funds were, in fact, diverted from the staff loan repayment scheme.

During the court proceedings, it was revealed that Mbiu’s company had not won the contract related to the funds received. In fact, evidence suggests that documents submitted by Mbiu in support of these payments were forgeries.

ARA has called for Mbiu to be prevented from benefiting from economic crimes at the expense of the public and KNH staff, whose money was allegedly defrauded.

The High Court has frozen the accounts for three months to allow ARA to complete their investigations. This shocking case will continue to unfold as it heads to court on January 23, 2023.

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