A businessman has been ordered to forfeit more than Sh34 million in US dollars and two high-end vehicles to the State over mysterious deposits linked to money laundering.
Mr Anthony Kepha Odiero was ordered to forfeit the money and the cars after failing to explain why he made the deposits in cash.
“Furthermore, and more importantly, the respondent (Mr Odiero) has not explained the source of the cash deposits,” said Justice Patrick Otieno.
“Most of his business partners and transactions which the respondent alleges to have been paid in cash are not located in Kenya.”
The judge said it was intriguing that Mr Odiero would travel to European and Asian countries to collect payments in cash and then head back to Kenya just to make the cash deposits.
“If that was the case, did he make any declarations for the huge amounts of money in accordance with Section 12 and Second Schedule, Conveyance of Money Instruments to or from Kenya? In the opinion of the court, even if that was the case, it would still be a suspect transaction designed to defeat the reporting requirements and thus a suspicious conduct,” added the judge.
Assets Recovery Agency (ARA) told the court that they investigated allegations of money laundering and drug trafficking against Mr Odiero, which revealed money laundering and acquisition of assets through proceeds of crime.
The agency said it was established that he would walk into the bank and deposit money in small bits - below Sh1 million - to avoid the reporting threshold.
ARA said even though they did not establish where the monies came from, it was the agency’s conclusion that they were proceeds of crime intended to be laundered.
The funds were deposited between 2020 and 2023, where a total of $596,500 was banked.
When asked to explain the source of the funds, Mr Odiero said he made money through association with VIPs and people in high ranking positions around the world.
Mr Odiero indicated that he was a director of three companies- AIB Associates Limited, a consultancy company, AIB Petals Limited that trades in the export of flowers and Insurance Brokers Limited, which provides general insurance services.
He said the nature of his business which includes the exportation of fresh cut flowers, insurance brokerage and international consultancies and that he owned several properties including an apartment and motor vehicles.
In addition, he stated that he was given a contract to negotiate the lease of several helicopters from Kenya to be used in the 2023 Malagasy presidential elections campaign for which he was paid a down payment of $120,000 in cash.
Mr Odiero added that it was a common business practice in the UAE to make payments for goods and services rendered in cash and he received most payments for sale of cut flowers, brokerage fees and consultancies in both USD and Euros, part of which he deposited in the frozen bank account.
The judge said in the decision that the only transaction which he satisfactorily explained was for a consultancy services in which he was paid 10 million on September 28, 2021.
“A declaration that the sum of USD 270,888.47, out of the sums held in account number ***, at National Bank of Kenya Limited, in the name of Anthony Kepha Odiero are proceeds of crime and the funds are hereby forfeited to the government,” said the judge.
