Kenya Loan Scam: UK Accountant Sentenced Over Ksh13 Million Council Theft

A former Portsmouth City Council accountant has avoided immediate imprisonment after admitting to stealing more than £72,000 from public funds while being coerced by online fraudsters.

The 49-year-old, who had worked for the council for almost 30 years, was sentenced at Portsmouth Crown Court after pleading guilty to theft by an employee. The court heard that she stole the money between April 2022 and January 2023 by altering tenant payment records in housing accounts.

She converted the difference between the altered payments and the actual amounts owed into Amazon gift cards, which were then sent to fraudsters abroad. The woman first became involved with the fraud in 2021 after seeking a loan from a company that claimed to operate in Kenya. 

The company was later found to be fraudulent. The scammers subsequently demanded repeated payments and threatened her when she could not meet their demands.

Unable to raise the money they demanded, she used her position at the council to obtain funds. She accessed housing accounts and altered payment records to divert money to the fraudsters.

The council eventually detected the irregularities and began an internal investigation before reporting the matter to police. The woman was dismissed from her job and later faced additional charges, including false accounting and acquiring criminal property. Those charges were left on file, while she pleaded guilty to theft at the earliest opportunity.

Judge Michael Bowes KC said the offence involved a serious breach of trust. He noted that the money belonged to the council and ultimately came from taxpayers. The judge sentenced her to eight months in prison, suspended for two years, and ordered her to complete 200 hours of unpaid community work. No compensation order was made.

The court also heard that she had been manipulated by the fraudsters and had acted under pressure and intimidation. However, the judge said those circumstances did not excuse her actions.

The case demonstrates how victims of online fraud can become involved in criminal activity. Fraudsters can use psychological pressure, threats and coercion to obtain money, with some victims eventually committing offences themselves to meet their demands.

Kenya has also been identified as a significant target for cybercrime. An Interpol report in 2026 highlighted attacks on mobile money platforms and telecommunications networks. More than 46,000 Distributed Denial-of-Service incidents were recorded in the first half of 2025, while mobile money fraud was identified as a growing threat.

Online fraud can therefore have consequences beyond financial losses. Victims may face reputational damage, legal consequences and psychological harm, while organisations must strengthen controls to protect public funds and other assets.