An unfolding money laundering investigation at City Hall has taken a startling turn after detectives discovered that two central figures linked to suspected fraudulent payments to Nairobi County government cannot be tied to any country in the world. The revelation has raised concerns about how individuals with no verifiable nationality managed to register a company, secure public contracts and receive millions of shillings from county coffers.
Detectives are probing nine companies believed to have been used to siphon hundreds of millions through ghost contracts and nonexistent service deliveries. But the discovery of stateless company directors has added an unexpected dimension to a case already marked by irregular ownership structures and questionable financial transactions.
At the centre of the inquiry are Mitesh Shah Mahendrakumar and Jagat Shah Mahendrakumar, the key shareholders of AR Pharmaceutical Limited. Each controls 500 shares, giving them full ownership of the company, yet official records list their nationality as “not applicable.” Investigators say such a designation is nearly impossible under Kenya’s laws because every company director is required to provide clear proof of nationality during registration. The anomaly has amplified suspicion that deliberate manipulation of records may have taken place to conceal the true identities of the directors.
AR Pharmaceutical is one of nine companies under investigation. Its internal structure shows four additional directors who are listed but possess zero shares, raising questions about their actual role. Detectives say the pattern is consistent with schemes designed to mask true beneficial owners while using figurehead directors to make the company appear legitimate.
Other companies under scrutiny reveal similarly unusual structures. Ramecon Engineering Limited is registered under Phoebe Kanini Kimasyu, with Walter Zakayo Kilonzi as secretary. Investigators believe the company received significant county payments despite having no record of delivering the services it claimed. Burasha General Supplies Limited is jointly owned by Mariam Buraq Hassan and Eva Wairimu Kimani, while Future Link Limited is almost entirely controlled by Lucas Zachaeus Odhiambo, who holds 999 of its 1,000 shares. These ownership patterns have strengthened investigators’ belief that the companies were created and structured for the purpose of diverting public funds.
The investigation deepened after a letter dated July 21, 2023, from DCI Director Mohamed Amin demanded that Nairobi County submit tender records, contracts, delivery documents and payment details connected to all nine companies. The letter indicated that detectives were investigating allegations of money laundering involving fraudulent payments for services that were never rendered. It also suggested that collusion between county officials, procurement officers, treasury staff and private contractors was instrumental in facilitating the transactions.
Sources familiar with the inquiry describe the corruption ring as a multi-layered network that used gaps in county systems to process invoices, approve payments and bypass auditing mechanisms. Detectives are also scrutinising foreign-linked individuals within the companies, including directors of Indian origin, to establish whether international financial channels were used to transfer misappropriated funds beyond Kenya’s borders.
Attempts to contact representatives of the nine companies have been unsuccessful. None responded to inquiries, and investigators say the silence mirrors what is typical in complex financial crime cases where suspects avoid public comment while waiting to see how far investigations reach.
The case has exposed significant gaps in corporate regulation and procurement oversight. The fact that individuals with undefined nationality were able to register a company and secure public payments has raised concerns about compliance checks at both the Business Registration Service and City Hall. Compliance specialists say the system should have flagged the company for enhanced scrutiny.
As investigators continue to follow the money trail, they believe the presence of stateless directors could be the key to unlocking a broader network of corruption. The DCI is expected to seek cooperation from foreign agencies as part of efforts to trace assets and identify the real beneficiaries of the scheme.
For Nairobi residents, the investigation highlights a troubling pattern of systemic failure that allowed public funds to disappear into the hands of individuals who may not legally exist within any national registry. Detectives say the case could become one of the most significant corruption investigations City Hall has faced in recent years, with potential implications for senior county officials and private actors who may have participated in or benefited from the elaborate scheme.
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