Court allows withdrawal of Sh400 million fraud case against Kenyan businessman
Defence lawyer Stanley Kangai, representing the accused, did not oppose the application, informing the court that the case had dragged on for too long due to the complainant’s failure to proceed.
A Nairobi court has allowed the Director of Public Prosecutions (DPP), Renson Ingonga, to withdraw a criminal case in which Kenyan businessman Koome Kirimi was charged with defrauding a Rwandan national of over Sh400 million involving a tech firm.
In a ruling delivered by Milimani Principal Magistrate Ben Mark, the court found the DPP's application to withdraw the case to be merited.
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“I therefore acquit Kirimi under Section 202 of the Criminal Procedure Code (CPC),” said the magistrate.
Defence lawyer Stanley Kangai, representing the accused, did not oppose the application, informing the court that the case had dragged on for too long due to the complainant’s failure to proceed.
Kirimi, a former director of Stay Online Limited, was accused of conspiring with others not before the court to defraud the firm's CEO, Desire Muhinyuza, of $2,619,583.27 (approximately Sh400 million during that year).
He was alleged to have committed the offence on diverse dates between July 10 and October 2023 in Nairobi.
The businessman also faced charges of stealing $100,000 (approximately Sh14.9 million) from Stay Online Limited — funds that had been entrusted to him for the payment of the company’s taxes.
Additionally, Kirimi was accused of making a false entry of $100,000 into his USD account held at Equity Bank and of giving false information to a police officer. He was released on a cash bail of Sh500,000 after being charged on October 17, 2023.
Earlier, the High Court had ruled that the disputed Sh400 million fintech company belongs to a Rwandan investor.
In his judgment, Justice Alfred Mabeya declared that Desire Muhinyuza was the legitimate owner of Stay Online Limited (SOL).
"Accordingly, I find and hold that the first plaintiff (Muhinyuza) is the beneficial owner of the company. The first defendant (Kirimi Koome) committed fraud by failing to properly complete the beneficial ownership form at the time of incorporation," the judge ruled.
Justice Mabeya ordered Koome to repay $100,000 (Sh14.9 million), which he had received from the Rwandan investor for tax purposes but failed to remit.
Koome was also directed to pay interest on the $2.6 million (Sh400 million) at the prevailing court rate.
In the dispute, Kirimi had claimed ownership of SOL, while Muhinyuza told the court that Kirimi was appointed as the company’s agent to navigate immigration challenges and comply with Kenyan banking regulations.
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