Family Ties and Bribes: Coastal CBO and Coast General Staff Rocked by Corruption Scandal

A coastal community-based organization (CBO) and several staff members at Coast General Hospital are facing serious allegations of corruption, extortion, and abuse of office, raising concerns over accountability in public and civil institutions along the coast.

At the center of the controversy is Velma Kagonya, a nurse at the hospital’s ICU section, who sources allege has been involved in bribery and collusion with security personnel from a company owned by Said Abdhallah Salim, commonly known as Saidoh.

“She manages her money well to bribe her way. No one dares challenge her. Even Dr. Iqbal Khandwalla fears confronting her,” a hospital insider told this publication. The insider also claimed Velma frequently skips work, yet continues to wield significant influence.

Velma’s mother, Linet Kagonya, is said to have introduced her to the alleged illicit activities, creating a family network that some insiders describe as untouchable.

The allegations extend beyond the hospital. Documents seen by this publication indicate that Velma is also involved in One Tree One Child CBO, a group accused of operating like a “family cartel,” allegedly under the patronage of her mother Linet Kagonya, a senior Kenya Forest Service (KFS) officer in Kilifi County.

The CBO, embroiled in internal revolt and complaints from human rights activists, is accused of a series of irregularities, including the unilateral removal of officials, misuse of members’ portraits, and fundraising under disputed representation. A strongly worded letter from the Western Human Rights Forum claims Velma imposed her younger brother as treasurer—despite him being a student—and altered bank account signatories without member approval.

An insider familiar with the CBO’s operations told this publication, “This has been a family-run operation from the start. Decisions are made behind closed doors, and any official who questions them risks being removed or sidelined. The power dynamics here are unlike any other CBO I’ve seen.”

The controversy has allegedly escalated to include money laundering. Documents suggest that an Airbnb in Nyali, Mombasa, has been used as a hideout to launder funds, though these claims have not been independently verified. Allegations of sexual harassment and extortion against Velma also remain unproven in court.

Separately, senior KFS officials are accused of shielding embattled conservator Ruwa Kalama, who allegedly mistreated staff and engaged in questionable financial dealings dating back to Lamu County. Activists warn that such protection may undermine ongoing investigations and public trust.

The dispute comes ahead of the International Day of Forests 2026 in Kilifi, an event expected to attract senior government officials, including Governor Gideon Mung’aro. Human rights activists warn that the occasion risks being exploited for corrupt procurement under the guise of environmental conservation.

Among the most explosive claims is that the CBO allegedly received a KSh 7.56 million tender through irregular processes after a KSh 200,000 bribe was purportedly paid to Ruwa Kalama. According to the documents, Velma Kagonya was overheard discussing plans to buy a Toyota Prado and share profits with her family.

The Western Human Rights Forum has demanded immediate action: suspension of Ruwa Kalama, cancellation of the tender, return of the alleged bribe, reinstatement of removed officials, and a halt to the misuse of members’ images. The forum has also threatened litigation, petitions, and media exposure if authorities fail to act within 72 hours.

 

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