Former Nairobi Governor Mike Sonko has won a major court battle after the High Court rejected an attempt by the Assets Recovery Agency (ARA) to seize Sh28 million held in various bank accounts. The court dismissed ARA's forfeiture case, finding that the evidence presented was insufficient to establish that the funds were proceeds of crime. Justice Nixon Sifuna ruled that the evidence on record did not support the assertion that the funds were proceeds of crime.
The case involved Sh16 million spread across seven accounts and US dollars 67,906.43 held in three accounts at Equity Bank and Diamond Trust Bank. The funds included Sh4.24 million, Sh1.46 million, Sh2.9 million, Sh2.69 million, and Sh1.29 million in various Equity Bank accounts, as well as Sh2.23 million at Diamond Trust Bank and Sh1.16 million at Co-operative Bank. The dollar accounts held USD20,906.90, USD7,573.03, and USD39,426.50.
ARA had argued that investigations showed Sonko received suspicious cash deposits between August 2017 and December 2019, which it alleged pointed to money laundering and proceeds of crime. The Agency sought forfeiture of the funds under Sections 90 and 92 of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA). However, Justice Sifuna faulted the quality of the investigations by ARA, stressing that investigators were required to establish their case with credible evidence.
Sonko denied that the funds were proceeds of crime, telling the court that they were derived from legitimate business activities and property transactions. He said he had generated money through matatu operations, restaurants, real estate, and the sale of several properties, including parcels in Kwale, and produced documents to support his explanation. The court found that the Agency had not sufficiently disproved his explanations.
Justice Sifuna ordered that the funds, which had been preserved under court orders issued in February 2020, be released to Sonko unless they were being held for another lawful purpose. The judge emphasized that in corruption matters, investigators should maintain a high bar and quality, regardless of whether the investigations are for criminal prosecution or civil forfeiture suits.
The judge's ruling was delivered on October 1, 2025, and the court dismissed ARA's suit with costs. Sonko's win is a significant reprieve for the former governor, who had faced allegations of money laundering and corruption during his tenure as Nairobi Governor.
The court's decision highlights the importance of credible evidence in investigations and the need for agencies to follow due process in their operations. The ruling also underscores the role of the judiciary in protecting the rights of individuals and ensuring that the rule of law is upheld.
Key points
- The High Court rejected the Assets Recovery Agency's bid to seize Sh28 million from former Nairobi Governor Mike Sonko.
- The court found that the evidence presented was insufficient to establish that the funds were proceeds of crime.
- The judge ordered the release of the funds to Sonko, citing a lack of credible evidence from the ARA.
