Last year, the state forfeited KSh 202 belonging to Deputy President Rigathi Gachagua over claims of money laundering.
The court in its decision stated that the then-Mathira MP Rigathi Gachagua fraudulently acquired the cash from state institutions and the County Government of Bungoma.
However, on Wednesday, February 2, the Assets Recovery Agency (ARA) wired back the funds to the DP’s three bank accounts at the Rafiki Microfinance Bank.
The second in command through his counsel Kioko Kilukumi and the ARA reached an agreement to settle the matter after the new evidence proved that the funds were not proceeds of crime.
“The settlement is adopted and the matter is hereby marked as withdrawn,” a bench of three judges led by Justice Daniel Musinga said.
This comes just days after the ARA urged the court of Appeal to return KSh 202 million that was seized from DP Rigathi Gachagua.
ARA last year disowned the evidence by the Director of Criminal Investigation (DCI) which had earlier stated that Gachagua had fraudulently acquired the said cash.
In filings in court, a police investigator attached to the agency said the businessman-cum politician legitimately acquired the said cash.
“The evidence obtained has satisfactorily explained the source and legitimacy of the funds at issue and the ARA is satisfied that the same is not proceeds of crime as was initially perceived and should be released to Gachagua,” the police investigator told the Court of Appeal.
The funds emanated from several state agencies including the Ministry of Lands (Kenya Informal Settlements Programme), the Department of Special Planning, and the Ministry of Health.
Other state agencies include the Bungoma county government, Mathira constituency development funds, Nyeri county government, and National Irrigation Board.
