NAIROBI, Kenya — The Court of Appeal has upheld a High Court decision ordering the Assets Recovery Agency (ARA) to unfreeze bank accounts linked to former Nairobi governor Mike Sonko, dismissing the agency’s attempt to continue preserving the funds pending appeal.
In a ruling delivered Wednesday, March 25, appellate judges found that ARA’s application lacked merit, stating there was no executable order capable of being stayed after the High Court dismissed the forfeiture case.
The decision effectively clears accounts holding more than Sh537 million that had been frozen on suspicion of being proceeds of crime.
ARA had moved to the appellate court seeking a stay of execution to halt implementation of the High Court judgment that declined to forfeit Sonko’s assets to the State.
The agency argued that under Section 97 of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), preservation and seizure orders should remain in force while an appeal is pending.
However, the Court of Appeal rejected that position, holding that the High Court judgment merely dismissed the forfeiture suit and did not require any action capable of being stayed.
“There is nothing arising out of the High Court judgment for this court, in an application for a stay, to enforce or refrain by injunction,” the judges ruled.
The appellate court further noted that execution could only relate to costs, adding that it could not suspend or vary a decision that simply declined to grant forfeiture orders. The judges concluded that ARA’s request did not meet the legal threshold for a stay of execution.
The ruling follows an October 2025 High Court decision that ordered the unfreezing of Sonko’s accounts after finding insufficient evidence to support allegations of money laundering. The court at the time held that ARA had failed to demonstrate that the funds in question were proceeds of crime.
ARA had frozen the accounts during investigations into suspected illicit enrichment, arguing the funds were linked to unlawful activities. The preservation orders prevented access to the money pending the determination of forfeiture proceedings.
With the dismissal of the appeal, the appellate court’s decision clears the way for Sonko to access the funds, bringing to a close a key asset recovery dispute tied to the former governor.
The case is part of a series of legal battles involving Sonko since his removal from office in 2020. The outcome also underscores the evidentiary burden placed on asset recovery agencies in civil forfeiture proceedings, where courts require proof linking funds to criminal conduct before allowing seizure by the State.
