Businessman Kirimi Koome Acquitted in Sh400 Million Fraud Case
A Nairobi court has acquitted businessman Kirimi Koome in a high-profile Sh400 million company dispute case with his Rwandese partner Desire Muhinyuza, following a withdrawal of charges by the Director of Public Prosecutions (DPP).
Koome, who had been accused of fraudulently obtaining millions of shillings from his business associate, walked free after Senior Principal Magistrate Benmark Ekhubi of the Milimani Law Courts allowed the DPP’s application to terminate the case under Section 202 of the Criminal Procedure Code.
DPP Withdraws Case After Complainant Fails to Testify
The DPP informed the court that the complainant, Mr. Muhinyuza, had failed to appear in court several times despite being duly notified of the hearing dates.
Magistrate Ekhubi ruled that granting further adjournments would serve no purpose given the repeated absences of the Rwandese complainant.
“I am of the conscientious view that the application is merited, because it will not serve any purpose to grant the complainant another date based on his antecedent,” the magistrate stated in his ruling.
The court further noted that Muhinyuza had previously been granted multiple adjournments, and at one point was even asked to attend the hearing virtually, yet he still failed to comply.
Background of the Case
Koome was accused of conspiring to defraud USD 2.6 million (approx. KSh 400 million) from Stay Online Limited, a company in which both he and Muhinyuza held interests.
Prosecutors alleged that between July 10, 2023, and October 4, 2023, Koome falsely represented himself as the rightful owner of company funds and diverted USD 100,000 that had been entrusted to him for tax payments.
The alleged transactions reportedly occurred at United Bank of Africa (UBA) Nairobi Branch, and the funds were later transferred to his personal account at Equity Bank, Meru Branch.
However, the court found that without the complainant’s participation, the prosecution could not proceed with the case.
Court Frees Koome Under Section 202
In his ruling, Magistrate Ekhubi cited Section 202 of the Criminal Procedure Code, which allows the court to acquit an accused person when the complainant fails to attend court without reasonable cause.
The prosecution confirmed that no valid reason had been given for Muhinyuza’s continued absence.
“No reason has been preferred why the complainant has not attended court, culminating in the court granting a last adjournment. In view of the foregoing, the prosecution sought to have the accused discharged pursuant to Section 202 of the CPC,” the court heard.
Following the ruling, Koome was officially acquitted and walked out of court a free man.
Broader Implications of the Ruling
The case had drawn attention due to its link to the ownership dispute of Stay Online Ltd, a firm reportedly handling multimillion-shilling transactions across East Africa.
Legal experts note that the ruling underscores the importance of witness cooperation and timely court attendance in complex commercial fraud cases.
The acquittal now clears Koome of any criminal liability related to the allegations, though civil proceedings regarding company ownership may still arise.
What’s Next
While the criminal case has been closed, it remains unclear whether Desire Muhinyuza will pursue further action through civil litigation or arbitration to reclaim control of the disputed funds.