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The Nairobian

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Private entities allowed to recover proceeds of graft

National

By Kamau Muthoni | Nov 29, 2024

Private citizens and corporations can seek redress for loss of funds through crime or corruption directly but from a civil court.

Court of Appeal Judges Francis Tuiyott, Jessie Lesiit and Ngenye Macharia unanimously agreed that they do not require to first get the persons they accuse of crime or graft are convicted before seeking to recover money or assets that are lost.

This is in a case where Mater Hospital was seeking to recover Sh127 million from its former employees, Dr John Muriithi, Joice Onyango, Judith Nyakundi, Duran Ligaga Amuyunza, Susan Kagendo Karanja and Sheer Logic Management Consultants Ltd, a human resource services firm.

At the High Court, Justice John Onyiego ruled that a private citizen or entity cannot approach an anti-corruption court to recover alleged lost money. He struck out the case.

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However, the bench headed by Justice Tuiyott found that the law allows both government agencies and private citizens to have rights but different paths.

They found that the Ethics and Anti-Corruption Commission has a recourse before the Anti-Corruption High Court, while private citizens and entities have a right before the civil court.

“Why should the public body have to journey a more rigorous process in seeking compensation from a person who has caused loss through conduct that constitutes corruption or an economic crime, than say a private company which seeks compensation from an employee who has caused loss to the company through fraud?” paused justices Tuiyott, Lesiit and Ngenye.

The five urged the court to strike out the case.