Former NYS clerk loses bid to keep Sh500m assets over graft

Evans Wafula Kundu a suspect in the NYS scandal. Former National Youth Service (NYS) clerk Evans Wafula Kundu has lost his attempt to block the Assets Recovery Agency (ARA) from taking control of his assets worth over Sh500 million. These properties were acquired during a period when a staggering Sh9 billion was lost through fraudulent contracts and illicit payments at the State agency. Between 2013 and 2017, being in charge of the mechanical and transport department at NYS, Kundu, who earned a modest monthly salary ranging from Sh9,564 to Sh26,300, deposited an eye-popping Sh197,391,968 into his bank accounts. During the four years, when there was a looting spree at NYS, he amassed massive wealth which included Sh197,391,968 cash deposits in his accounts and properties worth Sh350 million. These transactions sparked suspicion, leading to an investigation by the ARA of massive loss of funds at the youth facility, which later filed a case against him. In a recent ruling, the Court of Appeal dismissed Kundu's request to stop the ARA from managing his assets. Justices Fatuma Sichale, Francis Tuiyott and Fred Ochieng, expressed concern over delayed nature of the application to overturn the High Court ruling ordered two years later after he was directed to forfeit to the government the multi-million wealth that was determined was obtained through proceeds of crime. The judges rejected Kundu's plea to halt the takeover wondering why it took him Kundu over two years to file the application after the High Court's vesting order had come into effect. "Such a lengthy and unexplained delay is perhaps evidence that the application is simply an afterthought," the judges remarked. They also pointed out that Kundu had failed to explain why he suddenly doubted the capacity of the ARA to manage the properties, despite not raising any such concerns when the order was made in 2022. This ruling has been seen as a significant blow to Kundu, who had hoped to retain control over his wealth, arguing that the agency lacked the necessary infrastructure to manage the properties effectively. Kundu had in his defense attempted to justify his wealth, claiming that his substantial assets were the result of his maize farming business. He argued that his second wife had inherited properties, which he used for commercial farming, including seed production. He also expressed concerns that the ARA's management would lead to the deterioration of his assets, claiming that the agency lacked the capacity to handle his extensive real estate holdings. No credible evidence However, the evidence presented by the prosecution contradicted Kundu's defence. The High Court found that his reported income between 2013 and 2017 amounted to just Sh259,550, a far cry from the millions he was depositing into his accounts. "There was no credible evidence to support his claim of earning over Sh200 million from maize farming, nor could he substantiate the alleged Sh65 million and Sh175 million in proceeds from maize sales. Justice Esther Maina, who initially ruled on the matter, concluded that Kundu's lavish wealth could not have been legitimately acquired given his modest salary during the period in question. She determined that the properties were, in fact, proceeds of crime and ordered them to be forfeited to the government. Kundu's sprawling empire included a number of high-value assets spread across different regions of Kenya. Among the properties ordered to be forfeited are flats in Kasarani worth Sh16 million, which he acquired in 2014, and 40 acres of land in Kitale, purchased in 2013. He also owned a house in Runda, valued at Sh73 million, and a house in Kiamunyi, Nakuru. The former NYS clerk also owned a four-storey residential building in Njoro and a piece of land in Nairobi worth Sh6 million, in addition to his palatial home in Trans Nzoia. All these properties, valued at over Sh500 million, were purchased between 2013 and 2018, during a period of rampant corruption at the NYS, where millions were siphoned off through fraudulent schemes involving ghost suppliers and contractors. Kundu's role in the scam was central, as he signed many of the fraudulent Local Purchase Orders (LPOs) and issued payment vouchers for non-existent goods and services. The ARA claims that Kundu used his family members to shield his assets, registering properties in their names. He also allegedly conspired with his brothers to set up companies that were awarded NYS contracts, which were then paid millions of shillings for services that were never rendered.

Former NYS clerk loses bid to keep Sh500m assets over graft

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