Justice Nixon Sifuna of the Anti-Corruption and Economic Crimes Division ruled that the agency failed to prove the funds were proceeds of crime.

The judge added that the agency’s investigations were “rash, selective, and riddled with gaps,” and could not sustain a civil forfeiture claim.

He concurred with Sonko, stating that indeed he defended deposits as legitimate business and land sale proceeds.

ARA had argued that the deposits, spread across Sonko’s accounts at Equity Bank, Co-operative Bank and Diamond Trust Bank, were linked to corruption at City Hall and formed part of a “complex money laundering scheme.”

“The Motion states that there are reasonable grounds to believe that those funds are proceeds of crime. Reason for which the Motion has urged this Court to declare those funds proceeds of crime; and order that they be forfeited to the Kenya Government,” the judgment states.

In its case, ARA relied on an affidavit by Corporal Sautet Jeremiah, who claimed that between 2017 and 2019, Sonko’s accounts received “huge suspicious cash deposits and transfers” which were a “clear case of splitting, smurfing and placement of funds into the banking system.”

But the court criticised the agency for producing no statements from individuals allegedly involved in the flagged transactions and for only presenting bank records from August 2017, when Sonko became Governor.

“That selective approach is either dishonest or rash, oppressive and skewed to propound the Applicant’s narrative. It amounts to cherry-picking of data, as opposed to an objective consumption of the entire available data,” the judge ruled.

Sonko, in a replying affidavit dated November 7, 2023, dismissed the claims, saying he had legitimate business dealings long before entering politics.

The former governor through, Lawyer Harrison Kinyanjui cited earnings from matatus, nightclubs, restaurants, real estate and cyber cafes, as well as proceeds from land sales in Kwale and Kajiado worth hundreds of millions of shillings.

“I had for long had various income generating businesses, and it was normal and usual for my bank Accounts to receive huge cash deposits… I never at the time thought that I will later be called upon to explain these proceeds,” Sonko stated.

The judge found that ARA had not proved its case on a balance of probabilities as required under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA).

“Investigation is not a pastime activity to be undertaken lazily, leisurely, lousily and rashly. It is a solemn duty for which the investigator is being paid,” the court stressed.

Consequently, the application was dismissed and the funds, totalling about Ksh26 million, remain under Sonko’s control.

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The plans to remove former Nairobi Governor Mike Sonko from office were orchestrated at State House, the Anti-Corruption Court heard on Monday.

Testifying before Milimani Principal Magistrate Charles Ondieki, former Nairobi County CEC for Finance, Winfred Gathagu, alleged that the graft charges leveled against Sonko were part of a well-planned strategy spearheaded by senior officials at State House aimed at pushing him out of office.

“My colleagues and I from the Nairobi County were approached severally by senior officials from State House in order to assist in coming up with solid cases against my former boss, Mike Sonko, for court cases, impeachment, and so on,” Gathagu told the court.

Gathagu testified that Sonko was targeted due to his anti-corruption stance at City Hall, asserting that the entire plan to oust him was hatched at the highest levels of government.

“That all happened because Sonko was fighting corruption at City Hall,” she stated.

Led in her evidence by lawyers Assa Nyakundi and Elizabeth Ochieng, the former finance officer detailed how she was drawn into the case, revealing that she had recorded two statements with the Ethics and Anti-Corruption Commission (EACC) on January 15 and 20, 2020. 

The finance officer said that she had testified in the case both as a prosecution witness, under witness protection, and as a defence witness for Sonko

Although she initially testified for the prosecution, she refused to lie in court and chose to tell the truth.

As a result, the state almost arrested her.

She further informed the court of her involvement with Webtribe Ltd, also known as Jambo Pay, the firm contracted to provide electronic revenue collection services for the Nairobi County Government.

“I made payments to Webtribe, also known as Jambo Pay, when I was Chief Officer Finance for the services that were rendered for collecting revenue electronically on behalf of the Nairobi County Government.”

When questioned about her familiarity with the company’s leadership,  she responded:”Yes, I am aware of the director Danson Muchemi, since we used to liaise with them on a day-to-day basis on revenue collection. I confirm I found the company had already been rendering services to the former governor evans Kidero administration since 2018.”

She clarified that payments were made without external influence and explained the reasons behind delays.

“I paid the company without any influence. The main reason for delayed payments to Jambo Pay was because the exchequer had not released money to the county, and sometimes the money the county had was used to cater for urgent operational costs,” Gathagu stated.

She emphasized that Sonko was not involved in any specific payment processes.

“Sonko was not involved in the payments of services offered. He was only involved in budget-making.”

When questioned by Lawyer Nyakundi on whether she was ever influenced by Sonko to make payments to any individuals, including an alleged 25,000 people, she denied the claims outright.

“I was not influenced by Sonko to effect any payments, including to service providers. I would pay service providers after receiving money from the Central Bank of Kenya.”

Gathagu further testified that Sonko had raised concerns about the integrity of City Hall cashiers.

“Sonko kept complaining about cashiers at City Hall and would threaten to have them sacked for malpractices.”

She added: “It is true that we discovered some irregularities in effecting payments and that is why my former boss Sonko kept complaining. We were trying to correct the same and when we discovered irregularities in the payment system, we fired the cashiers and hired fresh ones. The old cashiers had stayed for over five years.”

Despite her explosive claims about strategy meetings and the involvement of State House officials, Gathagu did not name any individuals involved in the alleged plot.

During cross-examination by DPP Wesley Nyamache, Gathagu admitted that she did not record any statement with the EACC concerning the State House plot against Sonko.

The former finance boss was testifying in a sh 20 million graft case against Sonko and his co-accused Businessman Jamal Ombok.

The hearing continues

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