Court gavel./FILE
The High Court has handed former Nairobi Governor Mike Sonko a major reprieve after dismissing a bid by the Assets Recovery Agency to seize more than Sh16 million and USD 67,906 in his bank accounts, citing weak evidence and flawed investigations.
In a ruling delivered on October 1, 2025, Justice Nixon Sifuna rejected ARA’s suit and ordered the immediate release of the preserved funds to Sonko, unless lawfully held for other reasons.
The case, filed on May 21, 2020, sought to have funds in 10 bank accounts forfeited to the government under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA).
The agency alleged that the money was linked to corruption and money laundering during Sonko’s tenure at City Hall.
ARA investigator Corporal Sautet Jeremiah told the court that Sonko’s accounts received suspicious deposits and transfers between August 2017 and December 2019.
“The respondent received huge cash deposits and transfers from various accounts and banks which were suspected to be from the Nairobi City County Government and other government entities,” he claimed in his affidavit.
The agency also pointed to Sonko’s pending criminal charges, filed in December 2019 and January 2020, which included money laundering and acquisition of proceeds of crime.
It argued that the funds were ill-gotten and should therefore be forfeited.
The agency’s case relied on preservation orders issued on February 6, 2020, and published under Gazette Notice No. 1392 two weeks later.
But Sonko, in a replying affidavit sworn on November 7, 2023, dismissed the allegations and challenged the integrity of the probe.
He maintained that the money was from legitimate business ventures he ran long before joining politics.
“I have been in business since the year 1999,” he said, citing matatu operations, nightclubs, cyber cafes and real estate.
He further noted that some of the flagged transactions took place before he was sworn in as governor on August 21, 2017.
“Some of the deposits were made before I was sworn in as the Governor of Nairobi County,” he told the court.
He also produced documentation of multi-million-shilling property sales, including one worth Sh175 million and another worth Sh150 million, which he said explained the funds.
In his judgment, Justice Sifuna was scathing about ARA’s approach, faulting investigators for what he described as incomplete and biased analysis.
“The cherry-picking of data and selective presentation of bank statements from 17th August 2017 without antecedent records is not only misleading but also undermines the integrity of the investigation,” he said.
He added that the agency failed to produce witness statements or verify Sonko’s documents.
“The investigations must be thorough, professional and objective,” he ruled, criticising ARA’s reliance solely on one affidavit.
He observed that the agency did not present exculpatory evidence or consider alternative explanations for the deposits.
The judge concluded that the agency had not met the evidentiary threshold required under Sections 90 and 92 of POCAMLA.
"The evidence so far on record, is insufficient to support the assertion that the funds flagged by the applicant and which are subject to these proceedings... are proceeds of crime."
As a result, the judge dismissed the case with costs.
“The Originating Motion dated 21st May 2020 is hereby dismissed with costs to the respondent,” the judgment read.
“The preserved funds shall be released to the respondent forthwith unless otherwise lawfully held,” Judge Sifuna directed.
The ruling marks a significant moment in Kenya’s anti-corruption jurisprudence, underscoring the need for rigorous and balanced investigations before seeking civil forfeiture.
