High Court Dismisses Bid to Seize Millions in Sonko’s Bank Accounts

Lawyer Harrison Kinyanjui for former Nairobi governor Mike Sonko addressing the media at Milimani Law Courts after the high court dismissed a suit by the Asset Recovery Agency seeking forfeiture of his assets and over Sh500 million that was in accounts that the agency had frozen.

The High Court has declined an application by the Assets Recovery Agency (ARA) to have millions of shillings held in former Nairobi Governor Mike Mbuvi Sonko’s bank accounts forfeited to the State, dealing a major setback to the agency’s high-profile recovery efforts.

In a detailed judgment delivered in Nairobi, the court ruled that ARA had not proved, on a balance of probabilities, that the money was derived from crime or linked to corrupt dealings during Sonko’s tenure as governor.

The judge noted that while suspicions of money laundering had been raised, the evidence tendered by the agency fell short of the legal threshold required under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA).

“Suspicion, however strong, cannot take the place of proof. The law requires concrete evidence linking the funds to unlawful conduct before forfeiture can be ordered,” the judge stated.

The agency had sought to seize more than Sh18 million that had been preserved in ten different bank accounts at Equity, Diamond Trust and Co-operative Bank. Investigators argued that between 2017 and 2019, Sonko received “huge suspicious deposits and transfers” in Kenya shillings and US dollars, which they said were deliberately structured to conceal their source.

ARA told the court that the deposits pointed to a classic case of money laundering and urged the court to order forfeiture to the government.

Preservation orders had been obtained earlier in 2020, freezing the accounts pending the outcome of the forfeiture proceedings.

But Sonko, through a replying affidavit, dismissed the allegations as baseless and politically motivated. He maintained that the deposits were from legitimate businesses and long-running investments.

The former governor detailed his interests in matatus, nightclubs, restaurants, cyber cafes, barber shops and real estate, which he said predated his political career.

He further defended the deposits by producing sale agreements for several prime properties in Kwale and Kajiado counties worth hundreds of millions of shillings.

According to Sonko, proceeds from these land transactions accounted for the bank deposits flagged by investigators.

The former county boss also accused ARA of conducting a one-sided investigation, claiming the agency had failed to call witnesses, produce statements or interview key parties who could have shed light on the source of the funds.

He argued that the preservation orders had been obtained ex parte, without giving him an opportunity to explain himself.

In siding with Sonko, the court emphasized that civil forfeiture under POCAMLA is not dependent on the outcome of any criminal proceedings but must still be grounded in sufficient evidence.

The judge observed that once the agency establishes a prima facie case, the evidentiary burden may shift to the respondent, but the legal burden of proof remains with the applicant throughout.

“The Respondent supplied explanations and documentary evidence for the deposits. This cast doubt on the Applicant’s allegations and weakened the case for forfeiture,” the ruling noted.

With the decision, the frozen funds will now be released to Sonko, marking a significant win for the former governor as he continues to battle other corruption-related cases.