Disturbing details have emerged on how the CEO of Micro and Small Enterprises Authority ( MSEA) Henry M Rithaa is a corrupt, money laundering experts among other Dangerous crime.
According to the details in possession by our Investigating team, the Director has been handing serious department at the agency hence overseeing fraud, theft of money and other corrupt deeds.
According to a letter to the EACC , under Mr,Rithaa’s stewardship hundreds of millions of
shillings of public funds meant for the constituency industrials development centers CIDC Program
cannot be accounted for.
It is estimated that a whopping Kss 800 million of funds meant to spur the
growth of MSEs by identifying available resources and materials at the constituency level that can add
value for more significant economic benefit ,disappeared into thin air
The Chief Executive Officer at a State Agency ,the Micro and small Enterprises Authority MSEA Henry M
Rithaa is facing serious questions from the Ethics and Anti-Corruption Over allegations of financial,
money laundering and abuse of office
Well placed sources at MSEA showed the weekly vision a copy of a letter addressed to the EACC that
was signed by a section of board members claiming that Mr Rithaa has been handling daily affairs at the
sate cooporation with arrogance intimidation and the threats with the support of former CS Peter
Munya
The Letter to the EACC reveals how under Mr Rithaa’s stewardship hundreds of millions of Kshs of public
funds meant for the constituency industrial development centers CIDC program cannot be accounted
for.Its estimated that a whopping Kshs 800 million of funds meant to spur the growth of MSEs by
identifying available resources and materials at the constituency level that can add value for more
significant economic benefit,disappeared into thin air
The letter speculates that the loted funds may have been challenged to the Azimio Coalitions’2022
general elections campaign kitty.The CEO and his close advisors have now embarked on intimidating the
auditors who discovered the huge loss.Some board members who alleged to have requested thet the
CEO account for the project cash were also not spared by the CEO’sarrogance.Despite Mr Rithaa’s claims
that 180 CIDC projects were renovated,he cant provide any info on each project.
The board has put him on task to provide specific project description and activities ,specific expenses on
each refurbished project,respective project reports period implementation project completion
levels/percentages ,and details of the contractors engaged by the Authority ,but he has failed to do so It has emerged that a few of the projects thet were implemented were arbitrary awarded to the
CEOs cronies and biz partners who ended up doing shoddy work.
Investigations further show thet over the years ,cash intended for particular SNEs has not been distributed to or received by the intended beneficiaries .
Records however,have been created factiously
,and fraudlent cash-transfer paperwork have cleared the accounts in the name of the
recipients.
Additionally,it was discovered that the majority of the monies allocated for the purchase
,distribution and training of MSE specific machinery and equipment,such as cold storage and vehicle
washing machines,were lost in murky ways.
Investigations also Show thet the CEO has been openly discriminating when allocating projects to
various areas ,treating the organization like his personal property.Tasks have been distributed to areas
depending on tribal and political affliation.In the lead-up to the 2022 generalelections,the CEO gave
orders that the distribution of car wash and other equipment to recognized MSEs should be distributed
out in particular regions especially in Meru to please former CS Peter Munya.The distribution of the
equipment was predominantly cantered in the Nyanza and Meru Regions ,according to the docs that are
now available .l thought Mr Rithaa was given aclear framework for project identification and
distribution,he disregardedit for political reasons ,Chose a small group of preferred staff to work with
,and chose projects that were focused on regions connected to him and the then Cs Munya.The letter to
the EACC alleges that the paid to Rithaa’s cronies disguised as contractors would openly find their way
back to him in the form of bank deposits.MPESA transactions and cash handouts.
According to other reports ,the CEO isunable toexplain how more than Kshs 50 million was spent on a
foreign vacation with his friends and a female non staffer.Records reveal thet the CEOtravelled to
Mwanza,Tanzania ,for a trade event intended to introducesome of the MSE representatives and
highlight significant developments in the MSE.The trip turned out to be acashcow for the CEOand his
Cronies and known girlfriends within and outside MSEA.
The source divulged thet the money was wired from MSEA bank accounts to his preferred staff and non-
staffers,However some of the represantatives of known MSE,who were listed as having rfeceived
hundreds of thousands ,claimed they were not part of the Mwanza delegation,During the trip,the
authoritylost an additional Kshs 20Million dished out in the form of handouts to the CEO and his
cronies.Further ,in December 2022,Mr Rithaa and the same clique of his preffered staff ,consistently
drawn from the CEO’s office ,accounts,business development,procurement,and strategy
departments,hatched a plan to reward themselves during the EACTrade Fir held in Kampala by initiating
massive procurements without following due process.
Over Kshs 20 million was siphoned from MSEA through this scheme, and the value derived from these
trade fairs is minimal compared to the monies spent.Investigations further reveal that the CEO and
some of his preferred office friends ,especially the Director of corporate services ,Director Strategy and
some junior staff ,are always on imprest ,even on days when they are not physically in the office .It has
become an open practice for the staff accompanying the trips to draw huge sums(an average of Kshs
500,000)of unapproved imprests disguised as logistics and local running expenses.The ammounts are
never accounted for,as the officer enjoys the protection of the CEO.
It has also been discovered thetb the CEO has been using exhibitions and fairs in and out of the country
as a channel for looting public funds,The CEO hasnever tabled before the MSEA Board any reports on
the high capital programs and exhibitions sponsored and facilitated by the Authority .Another program
where millions have been lost is through the refurbishment of MSE’s premises and power
connection.Reports indicate that some of the MSE’s have not been connected to power yet reports
indicate that all the payments were settled upon completion of the projects.In acase of abuse ,the CEO
has been hiring staff without following due process.
Recently ,he recruited 27 employees ,15 of whom were from his home county of Meru.Investigations
reveal that their was no Board approval ,no advertisement and no recruitment process at all .When
asection of board members learned of it and questioned his actions,he threatened to initiate a process
for their removal by the current CS.He has,however ,invoked the names of CS Checlugu and PS Susan
Mang’eni as having initiated the recruitment of the 27 staff members,and the majority of those
recruited were recommended by the CS and the PS.
Investigations further confirmed that the CEO recently promoted 30m staff members unfairly and
without merit.The decision to promote was neither deliberated nor ratified by the board.To ensure that
his actions are not queried by members of the board ,the CEO has ensured that the board is divided and
never speaks in one voice.Already, he has brought to his side three board members ,while those with
divergent opinions are threatened that the CS is considering disbanding the board.He openly brags that
he enjoys the protection of senior and well-placed officers in all of Kenya;s investigative and oversight
agencies ,including Parliament.