Editor's Review

  • A court issues an arrest against former assembly speaker wanted in Ksh4.1 million fraud case.

A court has issued an arrest against former Kisumu county assembly speaker Onyango Oloo.

The former Speaker is wanted for failing to appear for the court for the mention of the Sh4.1 billion fraud case for the Lake Basin Development Authority (LBDA) mall in Kisumu.

In 2019 Oloo was impeached by the county assembly on September 18 but filed a case seeking reinstatement and full benefits.

Justice Nduma Nderi of the Employment and Labour Relations Court said that the impeachment met the threshold set under the constitution and assembly standing orders.

Oloo was arrested alongside 30 other people, among them Bobasi MP Innocent Obiri, for alleged involvement in the graft over the construction of the LBDA mall in Kisumu.

Impeachment, Arrest & Charges

After his impeachment, Oloo faced fraud charges for the LBDA mall project that initially cost Sh2.45 billion but was later varied upwards to Sh3.86 billion.

The final account submitted by Quantech Consultancy, a firm associated with MP Obiri, valued the final works at Sh4.1 billion.

But later a team of experts from Public works prepared a report dated March 2018 and valued it at Sh3,011,166,765, meaning the final account was overstated by Sh1,127,728,339.

Oloo, who was then the LBDA Board chairman allegedly received a total of Sh15 million.

Detectives claimed that Erdermann Property Ltd paid the funds to Oloo as an inducement to facilitate the allocation of funds to LBDA, for the construction of phase 1 of the project.