Assets Recovery Agency (ARA) has gone to court to request the freezing of Sh6.7 million suspected to be proceeds from mobile phones stolen from Kenyans and subsequently sold both locally and across borders.
The agency filed an application before the High Court, seeking to prevent the funds, currently held in six bank accounts, from being accessed pending further proceedings to forfeit the money to the State.
According to ARA, the accounts in question are registered under the names of Syllus Musila Kivyatu, Isaac Shamora Aligula, and Mourine Adhiambo.
The agency's investigation stems from information it received in November last year, which linked the three individuals to a larger syndicate involved in the acquisition and sale of stolen mobile phones.
A heap of used mobile phones.
Photo credit: Shutterstock
ARA said the investigation uncovered that stolen phones are first collected from unsuspecting members of the public before being taken to a repair shop on Jogoo Road, Nairobi, where they are either reset or undergo minor repairs.
The phones are then resold to buyers in Kenya, as well as to markets in Uganda and Tanzania.
The agency asserts that the funds in these bank accounts likely represent the proceeds of crime, with ARA’s inquiry indicating that the money laundering activities were designed to obscure the illicit origins of the funds.
“Preliminary investigations have established that the respondents executed a scheme of money laundering, which aimed to conceal and disguise the nature, scope, and movement of the illicit funds,” ARA said in its court application. “These funds are suspected to be proceeds from criminal activities related to the theft of mobile phones.”
According to ARA’s filing, Mr Musila holds approximately Sh6 million across three bank accounts at Equity Bank and Co-operative Bank, while the remaining balance is distributed between accounts registered in the names of Ms Adhiambo and Mr Aligula.
The agency contends that the substantial sums in these accounts are directly linked to the stolen mobile phones and should therefore be frozen to prevent the possibility of them being transferred or withdrawn.
“Unless the court grants the orders sought, there is a risk that the respondents will withdraw or transfer the funds, thereby defeating the case and allowing them to benefit from the proceeds of crime, contrary to the law,” ARA stated in its application.
The agency urged the court to grant preservation orders that would prohibit the three individuals, along with their agents or representatives, from handling or transferring the funds in question.
ARA said the application before the court is part of a broader effort to curb mobile phone theft syndicates that have been wreaking havoc on the public, with victims often losing valuable devices to well-organized crime networks.
