A former senior lands official has been ordered to surrender assets, cash and vehicles worth Sh426.8 million to the State after the High Court found that he and his family failed to explain how they acquired the wealth.
Justice Benjamin Musyoki ruled that former Kilifi Principal Land Registrar Felix Mecha Nyakundi, his wife Stellah Nyaboke Otwori and companies linked to the family could not account for properties, bank deposits and other assets accumulated over more than a decade.
The assets forfeited to the government include Bantu Hotel along Kangundo Road, valued at Sh107.7 million, the Saro Wiwa apartment block in Nairobi’s Utawala area worth Sh35 million, a penthouse in Mombasa valued at Sh19 million and 11 parcels of land in Kilifi and Thika collectively valued at Sh15.4 million.
The court also ordered the forfeiture of three vehicles — a Toyota Land Cruiser Prado, a Mercedes-Benz and a Toyota Hilux — all valued at Sh11.9 million.
In addition, Justice Musyoki directed that Sh233.58 million held in bank accounts and M-Pesa wallets be surrendered to the government.
“Having said that, it is my opinion that the transactions in the bank and M-Pesa accounts, save for the available balances, must be taken as having been absorbed in the landed properties and businesses therein and the cash seized from the 1st, 2nd and 3rd defendants since it is apparent that what hit the accounts was utilised in either purchasing and developing the landed properties and establishing and growing the 3rd defendant’s business,” the judge said.
The Ethics and Anti-Corruption Commission (EACC) said investigations established that between January 2013 and March 2024, Mr Nyakundi and his associates acquired assets worth about Sh771.8 million.
According to the commission, the wealth comprised Sh467.7 million that passed through various bank and M-Pesa accounts, landed properties valued at about Sh287 million, motor vehicles and cash recovered during searches.
EACC told the court that the commission began investigating allegations of unexplained wealth, unethical conduct and bribery against Mr Nyakundi, who served in various land registries across the country before rising through the ranks to Principal Land Registrar.
The anti-graft body said investigations established that, during the period under review, Mr Nyakundi exploited his position in the Ministry of Lands and Physical Planning to engage in transactions that conflicted with the public interest.
Thika Land Registrar Felix Mecha Nyakundi arrested for involvement in a new graft scandal in his office.
Photo credit: POOL
The investigations further alleged that, while serving at the Kilifi Land Registry, Mr Nyakundi facilitated the allocation of public land to his wife in Mavueni B Settlement Scheme and Chakama Phase I and II settlement schemes, despite her not being among the verified beneficiaries approved by the Ministry of Lands.
According to EACC, the allocation was unsupported by any application or vetting documents. The commission also argued that settlement scheme policy limits allocation to one parcel per eligible household, yet Ms Otwori received nine plots.
The parcels included land in Chakama Phase I and II schemes as well as plots in Mavueni B Settlement Scheme.
During the period under review, he earned a gross monthly salary ranging from Sh69,660 in 2013 to Sh115,630 in 2024.
Justice Musyoki observed that Ms Otwori had not demonstrated that she had substantial independent sources of income before marrying the former registrar.
“There is no evidence that the 2nd defendant, who is the 1st defendant’s spouse, was ever in gainful employment or engagement before she met and married the 1st defendant,” the judge said.
The court also scrutinised the family’s explanation that the wealth came from farming, timber, catering and other business ventures and found the evidence presented insufficient.
Land Registrar Felix Mecha Nyakundi arrested for involvement in a new graft scandal in his office.
Photo credit: POOL
“I have looked at these permits together with agreements purported to be for leases of parcels of land for purposes of timber farming and in my view, they have nothing to show or prove the extent, level and authenticity of the business,” he said.
The judge said trading permits, licences and lease agreements are not proof of payments or income from the relevant business.
The court said businesses allegedly generating tens of millions of shillings would ordinarily have proper records, including invoices, vouchers, financial statements, offices and employees.
He dismissed financial statements presented by the family as unreliable, saying they appeared to have been prepared solely for purposes of defending the case.
Insert: Thika Lands Registrar Fellix Mecha Nyakundi.
Photo credit: Courtesy
The court similarly rejected explanations offered for millions of shillings that moved through personal and company accounts, including claims that some funds came from insurance policies, Treasury bonds and farming activities.
“In view of the above, I come to a conclusion that the 1st defendant has not satisfactorily explained the transactions in the said account and the balance therein is unexplained wealth,” the judge ruled.
On the Sh4.26 million recovered during the search operation, the court held that although the family claimed it represented hotel business proceeds awaiting banking, the source of the money had not been satisfactorily explained.
Justice Musyoki concluded that the properties, businesses and cash were interconnected and ultimately traceable to wealth whose source remained unexplained, warranting forfeiture to the State.
