While the Migori-based businessman has not been found guilty of fraud, his appointment is certain to raise debate at a time the war on graft tops President Uhuru Kenyatta'a agenda - alongside healthcare, housing, manufacturing and food security.
EACC’s documents before court show that Mr Kwaga’s companies received Sh1.6 billion in dubious contracts that the watchdog is investigating, after which substantial amounts were wired to Mr Obado.
Another 37 pieces of land in Migori and its environs were acquired with funds believed to have been stolen, and 22 of them are registered in Mr Kwaga’s name.
According to the EACC, Governor Obado operated an intricate web of companies and accomplices that saw county funds transferred to his children’s accounts in Australia, Hong Kong and China.
Allegations are that part of the cash paid to Mr Kwaga was wired to the accounts of Scarlet Susan Okoth and Acholla Okoth.
Attempts to get comments from Mr Mucheru were futile as he did not respond to our calls.
But EACC spokesperson Yasin Amaro said Mr Kwaga's appointment must have been an oversight because any individual under such investigations cannot be appointed to public office as per law.
"If someone is under investigation they cannot be appointed to public office until investigations are completed. According to Chapter Six of the Constitution, it is a requirement.
"That's the reason people first come for clearance from EACC. Once we check out the facts on the ground on Monday, we will review everything and see what action to take," Mr Amaro said.
The appointment has threatened to spark a heated war between the EACC and ICT ministry as debate on whether the appointment should stand will likely place the two institutions on opposite ends of the fence.
Meanwhile, the fruits of the March 9 “handshake” continue to be felt in Nyanza following the recent parastatals appointments that has seen close allies of ODM party leader Raila Odinga land plum positions.
In the Kenyan Gazette notice dated February 8, a good number of the names from Nyanza were appointed as either chairpersons or members of various parastatal boards by President Kenyatta and his Cabinet secretaries.
The move comes in the wake of Mr Kenyatta’s assertion that the country will no longer stand the "winner-take-all" mentality of political contests while giving his commitment to ensure that even those in the opposition are accommodated in government.