The High Court has dealt a significant blow to a Kenyan tycoon, ordering the freezing of over Ksh125 million in funds suspected to be proceeds of crime.
In a ruling issued on October 31, 2024, and published on November 15, Justice Esther Maina ruled that the money held in two separate accounts be frozen, preventing the individual from accessing or transacting with the funds.
The court issued the preservation order following an application filed by Benard Gitonga under the Proceeds of Crime and Anti-Money Laundering Act, 2009.
The tycoon, identified only by his company’s name, is now prohibited from withdrawing, transferring, or using Ksh123 million, which is held in USD and valued at approximately USD949,463.41.
In her ruling, Justice Maina stated, “It is hereby ordered as follows, that a preservation order be and is hereby issued prohibiting the respondents and/or its agents or representatives from transacting, withdrawing, transferring, using, and any other dealings in respect of funds held in the following accounts; USD949,463.41.”
The freeze order also extended to an additional Ksh2.5 million held in another account at Sidian Bank.
The total amount frozen by the court is valued at over Ksh125 million, and the tycoon will be unable to access the funds until the 90-day freeze period expires in January 2025.
The court also warned the tycoon and his agents not to defy the ruling. Should they violate the directive, they face contempt charges, including a potential six-month prison sentence.
“Take notice that if you, the above-named respondents or your servants/agents disobey this order, you will be cited for contempt of court and shall be liable to imprisonment for a period of not more than six months,” the court added.
The ruling comes as investigations continue into the source of the money, with authorities focusing on whether it was obtained through criminal activities.
The 90-day freeze is part of efforts to prevent any illegal transactions while authorities examine the legitimacy of the funds.
The tycoon now faces a lengthy wait for the investigation process to conclude, with the possibility of the assets being permanently seized if the allegations are substantiated.
