Nandi Hills MP Alfred Keter, 2 others arrested on claims of Sh633m t-bills forgery

Mr Sakwa and Mr Chatur are directors of Desai Industries and were arrested for allegedly presenting the forged treasury bills purportedly issued by the CBK in the 1990s.

Police pounced on the three a few minutes after 11am.

"The three individuals have been arrested for presenting forged Treasury Bills purportedly issued by the CBK in the 1990s," said Mr Wallace Kantai, the CBK's director of communications.

Treasury Bills, also known as T-Bills, are short-term promissory notes issued by national governments as to regulate money supply and raising funds via open markets.

Issued through central bank, T-bills, which mature within a year, pay no explicit interest but are sold at a discount, their yield being the difference between the purchase price and the par-value.

The CBK has, over the years, been battling cases of businessmen seeking to reap from the bills.

Stolen bonds

In 2012, for instance, a blacklisted trader Fred Mweni claimed Government lost at least Sh2.6b in stolen Treasury bonds.

The next year, however, Mr Mweni and five others were in court for a case revolving around fraudulent trades executed during a computer system migration.

In October 2012, Mr Mweni entered into an agreement with CBK where his company was supposed to pay the bank an agreed amount of Sh48 million in a case he was accused of illegally selling government bonds.

Tsavo Securities, in which he held 15 per cent of shares, managed to repay Sh20 million leaving a balance of Sh28 million in 2014.