Court Of Appeal Unfreezes Sonko’s Sh537 Million In Major Blow To Recovery Agency
News Updated: 25 March 2026 20:13 EAT
Former Nairobi Governor Mike Mbuvi Sonko
The Court of Appeal of Kenya has lifted the freeze on more than Sh537 million linked to former Nairobi Governor Mike Sonko, ruling against an attempt by the Assets Recovery Agency to retain control of the funds.
In its decision, the appellate court found that the agency’s application to suspend a High Court ruling lacked legal basis, effectively allowing Sonko to access the money that had been under preservation orders for years.
Judges held that the High Court had issued what is legally termed a “negative order” when it dismissed the forfeiture suit, meaning there was no enforceable directive capable of being stayed pending appeal.
The bench emphasized that a dismissal does not compel any party to act or refrain from acting, and therefore cannot be subject to a stay order as sought by the Assets Recovery Agency.
The case stems from a High Court judgment delivered in 2025, which threw out the agency’s bid to have the funds forfeited to the state on grounds they were proceeds of crime.
In that ruling, the court faulted investigators for failing to provide sufficient evidence, citing gaps in documentation, absence of key witnesses, and inconsistencies in the financial trail presented.
During the appeal proceedings, the agency argued that the law allows preservation orders to remain in force even as an appeal is pursued, but the judges declined to uphold that interpretation in the context of the application.
The court also pointed out contradictions in the agency’s position, questioning why it sought a stay if statutory provisions already guaranteed continued preservation of the assets.
The decision clears the way for the release of the funds to Sonko, marking a significant legal victory for the former governor, even as the substantive appeal on the forfeiture case remains pending before the courts.
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FELIX MAKONA
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