The Ethics and Anti-Corruption Commission (EACC) has secured a Sh426.85 million forfeiture order against Felix Mecha Nyakundi, a former Kilifi Principal Land Registrar, his wife Stellah Nyaboke Otwori, and companies associated with the family. The Anti-Corruption and Economic Crimes Court found that they had not adequately explained how they acquired the wealth. The forfeited assets include Sh233.58 million held in bank and M-Pesa accounts, properties valued at Sh177.11 million, motor vehicles worth Sh11.9 million, and Sh4.26 million in cash recovered during a search operation.
The court's judgment, delivered on September 18, 2026, by Justice B.M. Musyoki, found a significant mismatch between the assets accumulated by Nyakundi and his associates and their known legitimate income. The EACC investigated Nyakundi's financial affairs and those of his associates from January 2013 to March 2024, establishing that they had accumulated assets valued at Sh771.89 million. This comprised Sh467.76 million that passed through different bank accounts and M-Pesa numbers, landed properties valued at Sh287.51 million, motor vehicles worth Sh20.06 million, and Sh4.26 million in cash recovered from the respondents' homes.
Nyakundi's gross monthly salary stood at Sh69,660 in 2013 before rising to Sh115,630 in 2024. However, the EACC found that only assets worth Sh58.17 million were satisfactorily explained by Nyakundi and his associates, leaving the rest exposed to recovery proceedings. The Commission instituted proceedings in accordance with Section 55 of the Anti-Corruption and Economic Crimes Act (ACECA) for recovery of the assets disproportionate to his known legitimate sources of income and which could not be satisfactorily explained.
The assets ordered forfeited include several high-value properties, such as Bantu Hotel on Kangundo Road in Nairobi, valued at Sh107.7 million, the Saro Wiwa apartment block in Utawala, Nairobi, worth Sh35 million, and a Mombasa penthouse valued at Sh19 million. Eleven parcels of land located in Kilifi and Thika, with a combined value of Sh15.41 million, are also part of the assets to be surrendered. The vehicles listed by the court include a Land Cruiser Prado, a Mercedes-Benz, and a Toyota Hilux.
The EACC welcomed the landmark decision, linking it to its efforts to recover public resources and prevent proceeds associated with corruption or unethical conduct from being retained by individuals. The Commission said the assets covered by the judgment will be forfeited to the Government of Kenya in line with the court's orders. This case adds to ongoing EACC efforts to use asset-recovery proceedings against wealth that cannot be satisfactorily accounted for through legitimate sources of income.
The EACC's 2024/25 report identified a recovery case involving Nyakundi and others, initially involving unexplained wealth valued at Sh713 million. The Commission has been using Section 55 of ACECA to recover assets in other cases, including a 2024 High Court ruling that ordered the forfeiture of bank transactions and a residential building after finding that they amounted to unexplained assets. The EACC's efforts aim to prevent individuals from benefiting from proceeds obtained through corruption or unethical conduct.
Key to the EACC's case was the use of Section 55 of ACECA, which provides for recovery proceedings where the EACC, after conducting an investigation, is satisfied that an individual possesses unexplained assets and has been given a reasonable opportunity to account for the difference between the wealth and known legitimate income. The person facing the recovery proceedings then has the evidentiary burden of satisfactorily showing the legitimate source of the assets.
Key points
- The EACC secured a Sh426.85 million forfeiture order against a former Kilifi Principal Land Registrar and his associates.
- The court's judgment found a significant mismatch between the assets accumulated by Nyakundi and his associates and their known legitimate income.
- The EACC used Section 55 of ACECA to recover assets disproportionate to Nyakundi's known legitimate sources of income.
