Woman to forfeit Sh4.2m, vehicles linked to husband's alleged drug trade

A woman accused of helping her husband launder proceeds of illicit drug trafficking has been ordered by the High Court in Nairobi to surrender motor vehicles and bank deposits worth more than Sh4.2 million to the government. Justice Benjamin Musyoki, sitting in the Milimani Anti-Corruption and Economic Crimes Division, ruled that two motor vehicles registered in the name of Faith Kananu and funds held in her accounts at Kenya Women Microfinance (KWFT) and Rafiki Microfinance Bank are proceeds of crime linked to her husband Joseph Nisa Ouma's alleged drug trafficking activities and must be forfeited to the State. "An order is hereby issued forfeiting motor vehicles registration numbers KCG993M, a lorry/truck and KBS 904X, a station wagon registered to Faith Kananu to Assets Recovery Agency on behalf of the Government," Justice Musyoki directed. He also ordered the Director General of the National Transport and Safety Authority to transfer and register motor vehicles to the ARA. The judge further declared the funds in KWFT and Rafiki accounts held in Kananu's name including Sh4,043,375, Sh238,324.70 and Sh13,532.65, to be proceeds of crime ordered the same to be surrendered to the state. "An order is hereby issued directing KWFT Bank and Rafiki Microfinance Bank Limited to transfer all the money, interest and accrued benefits in the said accounts to ARA's recovered criminal assets account at Kenya Commercial Bank," Justice Musyoki ordered The orders were issued following a lawsuit filed by the Assets Recovery Agency (ARA), which asked the court to declare that Kananu's assets were tainted and liable for forfeiture under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA). ARA through investigator Chief Inspector Benard Gitonga, told the court they initiated the probe against Kananu and her husband Ouma after receiving intelligence from the Directorate of Criminal Investigations. The tip pointed to ongoing probes into the couple over suspected trafficking of narcotic drugs and suspicious banking and mobile money activities. According to court papers, Ouma had been arrested on April 23, 2024 and charged at Kahawa law courts with four counts of trafficking in narcotics valued at Sh48,729,000. The drugs were reportedly ferried using three motor vehicles, KBM 645S, KCQ 081R and KCR 176C. Yet, despite the volumes of money investigators say were changing hands, Ouma's bank accounts were largely dormant, which ARA believed was indicative of a money laundering scheme designed to disguise and integrate proceeds of crime through his wife's accounts. Instead, ARA told the court, the cash flowed through mobile money and into microfinance accounts controlled or held by his wife, Kananu. According to investigator Gitonga, a forensic analysis of Kananu's M-Pesa personal number 070xxxxx79 showed it transactions of Sh20,187,280.80 between 2020 and 2024 with transactions amounting to Sh4,523,930 coming from Joseph. During the same period, the line recorded debits totaling Sh19,683,413.64, of which Sh6,951,387 was sent to various individuals, again, with Ouma and Kananu emerging as the top beneficiaries. Further, the court heard that mobile numbers 070xxxxx51 and 072xxxxx03 belonging to Ouma transacted Sh28,668,591.75 and Sh216,717,343.41 respectively between January 1, 2020 and July 8, 2024, frequently interacting with accounts and Mpesa numbers linked to his wife Kananu. In his affidavit, Gitonga added that deposits to the mobile wallets and accounts were made along a corridor known for drug trafficking routes namely Nairobi, Migori and Nakuru. A perusal of bank records from Rafiki Microfinance Bank also indicated that Ouma was listed as Kananu's husband. Gitonga also linked Ouma to other actors in the narcotics underworld. He told the court that one Pepriter Kadenyi Oduory, who transacted with Ouma, was charged at JKIA law courts vide criminal case number E013 of 2023 for trafficking in narcotics drugs and that ARA successfully applied for forfeiture of her property in ACEC No. E025 of 2023. The court further noted that Ouma alone was again on September 9, 2020 charged with trafficking narcotics drugs in JKIA law courts criminal case number E006 of 2020. Despite being served with the court papers, Kananu did not file any response to the application, leading to interlocutory judgment being entered against her. Justice Musyoki, however, noted that the absence of a defence did not relieve ARA of its burden to prove the case on a balance of probabilities. He was persuaded that Kananu's husband's financial activity and associations established a strong suspicion of criminality. The court found that the pattern of transactions, the amounts involved, Ouma's previous and ongoing charges for trafficking narcotic drugs, and his dealings with persons whose assets had also been forfeited, created a reasonable suspicion that he was involved in illicit trade and that the money flowing into Kananu's accounts was derived from that trade. "Having analyzed the transactions and considering that Ouma has been charged twice with offence of trafficking narcotic drugs and considering that he transacted with people who have also been charged with trafficking narcotics drugs and taking into account the fact that huge sums of money moved through his accounts, I am convinced that there is established a reasonable suspicion that the said Ouma is involved in illicit trade and the monies generated therefrom are proceeds of crime," the Judge held. On the role of Kananu, the judge was categorical: "The facts which have been laid before this court show that the respondent is a close associate, actually wife to one Joseph Nisa Ouma. Even if she were not the spouse to Joseph, the heavy transactions between the two suggest that they are engaged in a business venture." The judge held that ARA had established a prima facie case linking Ouma's alleged illegal activities to Kananu's assets, shifting the evidential burden to her to explain the legitimate source of the funds and properties, or to disassociate herself from her husband's activities. She did neither.

Woman to forfeit Sh4.2m, vehicles linked to husband's alleged drug trade

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