Mary Wambui: The Businesswoman at the Center of Multi-Billion Scandals

Mary Wambui Mungai, popularly known as Wambui wa Ruto, has built a reputation as one of Kenya’s most controversial businesswomen.

Her name frequently appears in cases involving multi-billion-shilling government contracts, tax evasion, and political connections that have helped her amass wealth.

The KNTC Rice and Edible Oil Scandal

One of the biggest scandals linked to Wambui involves the Kenya National Trading Corporation (KNTC). The agency was tasked with stabilizing consumer prices by importing essential goods such as rice, edible oils, and beans. However, the process was riddled with corruption.

• KNTC awarded Purma Holdings, a company owned by Wambui, a Ksh 3.9 billion contract to supply rice.
• The actual value of the rice was Ksh 3.1 billion, meaning taxpayers lost Ksh 800 million.
• She also secured a Ksh 2.5 billion contract to supply edible oil and another Ksh 3.4 billion deal for beans.

Court documents reveal that Wambui personally lobbied top government officials, including Head of Public Service Felix Koskei, to ensure she was paid. At the time, she was the sole owner and director of Purma Holdings.

Other companies linked to Wambui’s associates also received lucrative contracts:

• Charma Holdings, owned by Ruth Waithira Kinyanjui, secured a Ksh 1.95 billion edible oil contract.
• Evertec General Trading Company Ltd, which was part of Wambui’s tax evasion case, received a Ksh 984 million contract.
• Enterprise Supplies Ltd, with Wambui as the sole shareholder, was awarded Ksh 984 million for edible oil supply.

Tax Evasion Case and Political Influence

Wambui’s financial dealings have also attracted scrutiny from the Kenya Revenue Authority (KRA). In 2021, KRA accused her of evading Ksh 2.2 billion in taxes through Purma Holdings.

Despite the allegations, the case was quietly dropped in 2023. Many believe her political ties influenced the decision. Wambui has been a key financial backer of high-ranking government officials, ensuring protection from prosecution.

The charges were withdrawn just months before she secured the multi-billion-shilling KNTC contracts, raising concerns about how politically connected individuals manipulate the system for financial gain.

The Controversial Appointment to Communications Authority

In 2023, Wambui was appointed chairperson of the Communications Authority of Kenya (CA). Her appointment raised eyebrows due to her history of financial scandals.

• Critics questioned why a businesswoman with tax evasion allegations was given a key regulatory role.
• Civil society groups argued that the appointment was politically motivated.
• The move further cemented her influence within government circles.

Despite the backlash, she continues to hold the position, showing the extent of her political power.

Links to Money Laundering and Procurement Fraud

Over the years, Wambui has been linked to multiple questionable deals:

1. State House Contracts:
   • Reports indicate that she has used her connections to secure direct procurement deals.
   • These contracts involve inflated prices, with millions of shillings lost in overpayments.
2. Military and Police Supplies:
   • Her companies have allegedly supplied uniforms and equipment to security forces.
   • Some of these deals have been flagged for poor quality and high costs.
3. Government Agencies:
   • Various ministries and parastatals have awarded her firms lucrative tenders.
   • The lack of competitive bidding raises concerns about favoritism and corruption.

Impact on Taxpayers and Local Businesses

Wambui’s influence in government procurement has far-reaching consequences:

• Taxpayers lose billions due to inflated contracts and fraudulent deals.
• Local businesses struggle to compete with politically connected firms.
• Government credibility suffers, as corruption continues unchecked.

The pattern is clear: powerful individuals like Wambui continue to benefit from weak oversight, while ordinary Kenyans bear the financial burden.

What Next?

As more details emerge about the KNTC scandal and other questionable deals, will authorities take action? Or will Wambui’s political connections shield her from accountability once again?

Kenyan taxpayers deserve answers and justice. The government must demonstrate its commitment to fighting corruption by ensuring that individuals involved in these scandals are held accountable.

IN BRIEF

Mary Wambui Mungai, a prominent Kenyan businesswoman, has been at the center of numerous controversies involving government contracts and political connections. Her involvement in high-value tenders and close ties to political figures have raised significant ethical concerns.

Digital Super-Highway Scandal

One notable controversy involves the Sh5 billion Digital Super-Highway project. Wambui’s company, Nightingale Enterprises Limited, secured contracts to lay fiber optic cables for this initiative. Investigations revealed that Wambui transferred her shares in Nightingale to her daughter, Evelyn Nyambura Mungai, shortly before the tender awards. Critics argue this move was an attempt to avoid conflict-of-interest allegations during her tenure at the Communications Authority (CA), which oversees the ICT sector.

 

Chairperson Appointment and Subsequent Contracts

In December 2022, President William Ruto appointed Wambui as the Chairperson of the Communications Authority of Kenya (CAK). This appointment faced legal challenges, with opponents questioning her qualifications and prior involvement in controversies, including alleged tax evasion. Under Wambui’s leadership, Purma Holdings secured substantial government contracts valued at Sh30.6 billion for providing security and digital support services, reportedly awarded without open tendering processes. Additionally, Purma Holdings was awarded contracts by the Kenya National Trading Corporation (KNTC) to import essentials like cooking oil, rice, and beans, adding billions in potential revenue.

 

Tax Evasion Allegations

Wambui’s companies have also been implicated in tax evasion cases. In 2021, she faced charges related to a Ksh2.2 billion tax evasion case, which was later withdrawn amid claims of political motivations. Critics argue that her political connections may have shielded her from accountability in this instance.

 

These controversies highlight the complex interplay between business interests and political connections in Kenya, raising questions about transparency and ethical governance.