Court of Appeal declines ARA bid to freeze funds linked to Mike Sonko
By Zipporah Ngwatu, March 26, 2026A Nairobi Court of Appeal has declined a bid by the Assets Recovery Agency (ARA) to freeze millions of money linked to former Nairobi Governor Mike Sonko held in five bank accounts.
Justices Kathurima M’Inoti, Chacha Mwita, and Byram Ongaya, on Wednesday, March 25, 2026, rejected issuing stay orders against a judgment that had dismissed ARA’s suit against the former county chief.
ARA, a state agency, moved to the Court of Appeal seeking a stay order barring the execution of the High Court judgment pending the hearing and determination of the appeal it had filed.
“To the extent that the applicant (ARA) seeks an order of stay of execution against a judgment dismissing its suit, the Court cannot issue such an order. Accordingly, the applicant’s notice of motion dated January 22, 2026, has no merit and is hereby dismissed with costs to the respondent. It is so ordered,” the bench ruled.
While dismissing the suit, Judge Nixon Sifuna, in his ruling, stated that the evidence on record was insufficient to support the assertion that the funds flagged by the state agency in various bank accounts belonging to Sonko are proceeds of crime.
The Anti-Corruption and Economic Crimes Division in the Anti-Corruption Court on October 1, 2025, noted that there was, therefore, no legal basis for ordering forfeiture of the said funds to the Kenyan government as proceeds of crime; the court stated that the suit had failed and dismissed it.
The court further ordered ARA to unfreeze the accounts so that Sonko could access his money.
“Those funds, which were preserved by the interlocutory preservation orders issued on February 6, 2020, are hereby discharged,” Judge Sifuna ruled.
“It is hereby ordered that the said funds be released forthwith to the respondent (Sonko), unless otherwise lawfully held for any other lawful purpose,” Judge Sifuna added.
ARA had informed the court that it received information on suspected money laundering and proceeds of crime by the former county boss, private companies, entities, and other individuals involving public funds from the Nairobi City County government.
However, Sonko, in his defence, told the court that the disputed bank deposits in his accounts had been there even before he ventured into elective politics. He stated that he had long operated various income-generating businesses and that it was normal for his accounts to receive substantial cash deposits.
Notably, he told the court that the funds came through his businesses and companies, which operated matatus, nightclubs, restaurants, bars, barber shops, cyber cafés, and real estate, even before 2011.
He attached documents to his affidavit showing some of these businesses and companies, some dating as far back as 2009.
The unfrozen funds include Ksh16,007,218.73 and USD 67,906.43. With the October 2, 2025, exchange rate, the dollar amount converts to Ksh8,779,303.06.
This brings the total amount released to Sonko to Ksh24,786,521.79.