Nairobi Tycoon Loses Millions, Cars, and Properties in Fraud Case
A High Court ruling issued on October 25 has directed a Nairobi businessman to surrender over Ksh 82 million to the government, along with an array of high-value assets, including four luxury vehicles and seven prime land properties. The decision followed an application by the Ethics and Anti-Corruption Commission (EACC) over allegations of money laundering.
According to a Gazette notice dated November 22, the ruling, delivered at the Milimani Law Courts, ordered the businessman to pay Ksh 82,083,066, identified as suspicious deposits made into the second respondent’s account during the period under investigation. “The respondents are jointly and severally hereby ordered to pay to the Government of Kenya the sum of Ksh 82,083,066 which was deposited into the 2nd respondent’s account during the period of interest,” part of the notice reads.
In addition to the monetary forfeiture, the businessman is required to relinquish seven parcels of land deemed to be unexplained wealth. These properties are located in Dundori, Dagoretti, Kiambu, and Limuru. Two of these properties, however, will be valued at less than their current market rate as stipulated in the notice. “(The two) are hereby forfeited less the value of the current market value of the land upon which the developments stand,” it states.
The seized luxury vehicles include a Tata Tipper, a Toyota Station Wagon, a Nissan Station Wagon, and an Isuzu Truck. As an alternative to surrendering these properties, the respondent may pay an amount equal to their assessed market value, as detailed in the EACC’s valuation report.
The court further directed the respondent to bear the costs incurred by the EACC and the local bank involved in the fraudulent transactions.
The case centered on allegations that the respondent had used a corporate entity to engage in suspicious financial transactions amounting to money laundering. An additional transaction of Ksh 73,947,807.60, also suspected to be proceeds of crime, was brought under scrutiny but was excluded in the final ruling. This saved the respondent from a potential cumulative liability of Ksh 156,030,873.60.
The EACC’s application, filed on September 26, sought clarity on whether the businessman should be held accountable for the entire sum. However, the court only upheld part of the claim. “Whether the respondents jointly and severally should be ordered to pay to the Government of Kenya the cumulative sum of Kshs. 156,030,873.60 being cash deposits and bank transfers enumerated above and interest thereon at Court rates from the date of filing this suit until payment in full,” the application read.
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Nairobi Tycoon Loses Millions, Cars, and Properties in Fraud Case
