ENHANCING SYNERGIES: THE MULTI-AGENCY EXPERIENCE IN
FIGHTING CORRUPTION IN KENYA
Caroline Nyaga＊

I. INTRODUCTION
During the Second State of the Nation Address to Parliament1, the President took an unprecedented moveby tabling a confidential report on corruption cases under investigation by the Ethics and Anti-Corruption
Commission (EACC) and directed all the Public and State Officers implicated in graft to step aside pending
the outcome of the ongoing investigations. He further directed the Office of the Attorney General &Department of Justice to undertake a thorough review of the legal, policy and institutional framework forfighting corruption in Kenya. A Task Force2 was formed to oversee the whole process and it drew its
membership from all Ministries, Departments and Agencies charged with fighting corruption in Kenya
including the enforcement, investigative and prosecutorial agencies.3 One notable recommendation that arose
was the lack of proper coordination among agencies and duplication of efforts by various agencies thus
making the investigation and prosecution of corruption cases an uphill task due to lack of a coordinatedframework for reporting corruption, information gathering, intelligence sharing, cooperation in investigations,prosecutions joint trainings, among other areas.
Despite the myriad of laws in place to combat corruption, Kenya still ranks highly in the Corruption
Perception Index.4 The Task Force recommended institutional collaboration and partnerships amongagencies to enhance the fight against corruption.

II. LEGAL FRAMEWORK FOR ASSET RECOVERY IN KENYA
The Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) is the main legislation that provides
for the offence of money laundering and introduces measures for combating the offence, the identification,
tracing, freezing, seizure and confiscation of the proceeds of crime. It establishes the Assets Recovery
Agency5 and the Financial Reporting Centre. Others include the Mutual Legal Assistance Act of 2011 thatgoverns the mutual legal assistance to be given and received by Kenya in investigations, prosecutions andjudicial proceedings in relation to criminal matters. The Attorney Generalʼs Office acts as the Central
Authority. The Foreign Judgements (Reciprocal Enforcement) Act, 2012, also makes provisions in Kenya forthe enforcement of judgements given in countries outside Kenya which accord reciprocal treatment tojudgements given in Kenya. Others include: The Anti-Corruption and Economic Crimes Act, 2003; the AntiState Counsel at the Office of the Attorney General & Department of Justice, Kenya. She serves in the Legal Affairs Division,
Anti-corruption, Ethics and Integrity Section.
1
This was on 26th March 2015. (Art 132 (1)(c) of the Constitution of Kenya, 2010 requires the President to, annually, give a Stateof the Nation Address on all the measures taken and the progress achieved in the realization of the national values referred in
Article 10.)
2
Task Force on the Review of the Legal, Policy and Institutional Framework for Fighting Corruption in Kenya (2015), see
Gazette Notice No. 2118 of 30th March 2015.
3
The exercise culminated in the Report of the Task Force on the Review of the Legal, Policy and Institutional Framework forFighting Corruption in Kenya (2015). (The Task Force gave various recommendations for various agencies including the Asset
Recovery Agency, Financial Reporting Centre and others and most have been implementing them as part of their work plans.
When coming up with the recommendations, the Task Force considered: (i) The UNCAC Country Review Report (ii) The Draft
National Ethics and Anti-Corruption Policy (iii) Memoranda from member institutions, public organizations, civil society
organizations and select individuals.)
4
The 2016 Transparency International Corruption Perception Index ranks Kenya at No. 145/176 www.transparency.org
5
The ARA is an autonomous body whose mandate is to identify, freeze and seize assets which are proceeds of crime and tocombat money laundering. The EACC also has a department that recovers assets. The Agency was also established in further
fulfilment of the national obligations under UNCAC.
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20TH UNAFEI UNCAC TRAINING PROGRAMMEPARTICIPANTSʼ PAPERSCounterfeit Act, 2008; the Counter-Trafficking Persons Act, 2010; the Prevention of Organized Crimes Act,
2010, the Prevention of Terrorism Act, 2010, the Wildlife Conservation and Management Act No. 47 of2013, The Penal Code, Cap 63 Laws of Kenya.6
In the asset recovery chain, the agencies involved face various challenges ranging from: complexities ofcases; inadequacy of capacity especially if the same involves recovering assets stashed in other jurisdictions,lack of witnesses to support applications therefore implying that they are not sustainable before court, thetime frame for processing Mutual Legal Assistance requests is sometimes protracted and thus therequirement for interagency cooperation.
The punishments under Kenyan Law for corrupt practices include:
7 Imprisonment
7 Hefty Fines
7 Debarment from holding public office
7 Compensation orders on conviction
7 Forfeiture of unexplained assets.

III. THE FRAMEWORK FOR COOPERATIONIn regard to asset recovery and prior to the Task Force undertaking its assignment, there were various
fragmented avenues of institutional collaboration between agencies, for instance:
A. The Office of the Director of Public Prosecution (ODPP) Vs. The Ethics and Anti-Corruption
Commission Collaboration (EACC)The ODPP is mandated to prosecute all criminal cases while EACC is the main enforcement agency onmatters of corruption. In order to achieve success in the investigation and prosecution of these cases, the twohave to worked together. This has been achieved through joint trainings of investigators and prosecutors,
joint forms and prosecution-guided investigations. Through this initiative, the Guidelines for the Investigationof corruption and Economic Crimes and the Guidelines for the Prosecution of Corruption and Economic
Crimes have been developed and implemented by both agencies.
B. The Financial Reporting Centre (FRC)The Proceeds of Crime and Anti-Money Laundering Act also establishes the FRC7 whose main objective
is to assist in the identification of the proceeds of crime and the combating of money laundering and thefinancing of terrorism. It is mandated8 to:
7 Make information collected by it available to investigating authorities, supervisory bodies and anyother bodies relevant to facilitate the administration and enforcement of the laws of Kenya;
7 Exchange information with similar bodies in other countries regarding money laundering activities
and related offences;
7 Ensure compliance with international standards and best practice in anti-money-laundering
measures.
The FRC collaborates by assisting in the tracing of illicit financial flows relating to corruption and liaisingwith sister agencies outside the country on sharing of information related to corruption investigations. It has
concluded MOUs with the Central Bank of Kenya, the Insurance Regulatory Authority and the Capital

All these pieces of Legislation can be accessed from www.kenyalaw.org.
Section 23 of the POCAMLA.
8
Receive and analyze: reports of unusual or suspicious transactions submitted by reporting institutions; cash transactions madeby reporting institutions; cash declaration forms received from border points: Disseminating of reports received to appropriate
law enforcement authorities or other supervisory bodies for further handling: Make information collected by it available toinvestigating authorities, supervisory bodies and any other bodies relevant to facilitate the administration and enforcement of
the laws of Kenya; undertaking inspection and supervision of Reporting Institutions to ensure compliance with AML/CFT
reporting obligations as prescribed in POCAMLA: facilitating exchange of information on money laundering activities withother financial intelligence units in other countries: Developing AML/CFT Regulations to provide guidance to support
implementation of the Act: Developing AML/CFT training programmes for Reporting Institutions.
6
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Markets Authority.
C. Anti-Money-Laundering and Combating of Financing of Terrorism Round Table Meeting
This forum brings together financial sector stakeholders with the aim of creating awareness on antimoney-laundering issues. It also trains reporting entities, law enforcement authorities and personnel in the
FRC on anti-money-laundering issues. The Round table is now a national forum for information sharing,developing common approaches to issues and promoting desirable policies as well as standards. It draws
membership from: the Ethics and Anti-Corruption Commission; Office of the Attorney General & Department of Justice; Office of the Director of Public Prosecutions; National Intelligence Service; Kenya Revenue
Authority; Central Bank of Kenya; Asset Recovery Agency; Insurance Regulatory Authority; Directorate of
Criminal Investigations; Banks; Mobile Money Service Providers.9
D. The Birth of the Multi-Agency Team (MAT)The Multi-Agency Team is not anchored in law and was born out of a Presidential directive in November
2015. This was around the same time the Task Force submitted its Report to the President who directed thatthe recommendations be implemented fully. It had been noted that the lack of synergy and inter-agency
cooperation among law enforcement agencies was compromising the fight against corruption, economic
crimes and other related crimes. The areas of focus are:77
7
7

Corruption
Economic crimes
Other organized crimes
Cartels and syndicates

The essence of the MAT is to ensure that corrupt individuals have no leeway to escape when caught. All
agencies go for the culprit simultaneously, for instance: the DCI and EACC will conduct the investigations,the police would arrest, the KRA will go after taxes and revenue, the ARA/EACC will trace, identify, freeze
and preserve or recover assets. Therefore, this would corner the culprits and ensure they cannot run.
1. The Composition and Mandate of MAT
It is worth noting that the country has faced serious challenges with corruption whereby assets andmoney are stashed abroad. During the Third State of the Nation Address10, the President reported that theGovernment has invested in preventive measures as well as tracking, seizing and confiscating the proceeds ofcorruption. A total of Kshs. 1.6 billion was allocated to the multi-agency institutional framework to support its
operations. The membership comprises the following institutions:
7
7
7
7
7
7
7
7

Ethics and Anti-Corruption Commission
Office of the Director of Public Prosecutions
Directorate of Criminal Investigations
National Intelligence Service
Financial Reporting Centre
Asset Recovery Agency
Kenya Revenue Authority
Office of the President

2. Terms of Reference
The terms of reference of the multi-agency team are:7
7
7
7

To enhance cooperation, coordination and collaboration among the agencies
To engage other relevant agencies in order to enhance the effectiveness of the graft war
To identify resource needs for each agency and lobby for the same
To develop effective communication strategies for awareness creation on the gains andachievements made in the fight against corruption.

Report of the Task Force on the Review of the Legal, Policy and Institutional Framework for Fighting Corruption in Kenya(2015).
10
The Third State of the Nation Address made by the Parliament in March 2016.
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3. The Benefits of the Multi-Agency Team11
The Multi-Agency Team has accomplished the following since its inception. They include:
7 Better coordination, cooperation and collaboration among agencies. There have been joint trainings
to increase the capacities of officers handling corruption-related cases.
7 Joint investigations and operations among the agencies therefore pooled resources, synergy andavoidance of duplication of efforts. The MAT has undertaken joint sting operations through which
contraband cargo has been seized in Mombasa.
7 Real time information gathering and intelligence sharing.
7 Co-option of other agencies on an as needed basis into the MAT, for instance Kenya Wildlife
Services, National Transport and Safety Authority, the National Land Commission, among others.
There are times when the agencies lend resources (human capacities) to each other as needed.
7 Replication of the MAT collaboration in the counties
7 Engaging other stakeholders to enhance the fight against corruption including the Judiciary,
Parliament, donors and foreign missions.
7 Simultaneous actions, for instance: prosecution, civil proceeding, administrative action, asset
recovery, protection and freezing
In March 2017, the President reported that approximately 3 billion shillings had been recovered orpreserved12. The positive result of this is that the MAT has managed to marshal up resource allocations andincreased their visibility. Further, the MAT enjoys support and good will from the Government, donors andinternational agencies.
So far, the MAT has been in charge of some of the following major cases and investigations:
S/No.

Case Details/Particularsa)NYS: Investigation into
allegation of embezzlement of funds in excess ofKshs 1.5 billion

Outcome/Status
7

7

Assets, movable and immovable properties, worth Kshs.
421 million were either recovered/frozen/seized asproceeds of crime.
Various applications to vary or discharge preservation
orders defended before various courts.
26 suspects charged in court in predicate offence ofstealing, attempted stealing, conspiracy, tampering with apublic officer.
11 suspects have been charged with money laundering.

7
7

b)

Nairobi City County:
Investigation against theformer Finance Director
and others

7
7

Assets worth Kshs. 1.3 billion were frozen
The suspect charged in courtc)Eastleigh Mall Ltd:
Investigations into tax evasion in excess of Kshs. 386
million7

Company charged in court for tax evasion, along with 8
directors:d)Contraband Goods: 194
containers were seized at
Mombasa Port, made up of:- 75 containers ofsugar- 69 containers of
ethanol

7

127 containers were destroyed, made up of:- 18 containers of sugar- 59 containers of ethanol- 50 containers of rice
Estimated Customs value of the destroyed goods: 214
million67 containers are under investigation and prosecution,

7
7

These achievements were reported by MAT during the National Governance and Accountability Summit at the State House,
Nairobi on 18th October 2016
12This was reported during the Annual State of the Nation Address in March 2017, http://www.the-star.co.ke/news/2017/03/
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-

e)

f)

50 containers ofrice
Estimated Customs value:
359 million Estimated tax
amount: 517 million

made up of:- 57 containers of sugar- 10 containers of ethanol
7 2 suspects charged with respect to 5 containers of sugar:
7 Accused out on bond. 11 suspects charged with respect to
5 containers of ethanol:

National Youth
Development Fund: CEOof the Youth Enterprise
Development Fund in collusion with Board
Members schemed to defraud Kshs. 181 million

777

4 Persons Charged:
Charges: unlawful disposal of public property throughunlawful payment
Case is still before court

Tax evasion on Imported
Motor Vehicles:

7
7
7
7

121 registration number withdrawn
5 Suspects charged
All accused out on bond.
Warrants obtained for 3 suspects,

Loss of 121 containers under investigation.
16 suspects charged (3 stolen containers):

Impounded high value motor vehicles which were
allegedly stolen/improperly registered

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g)

Theft of containers in theport - 124 containers removed from the port without payment of taxes

7
7

h)

Fuel Adulteration: Sale ofadulterated fuel without
licenses.

77j)Imperial Bank Case: W.
E. Tilley case where thedirectors fraudulently
withdrew funds contrary
to the banking regulations.

7k)Eurobond: Allegations
that not all the moneys
realized through theEurobond issue could be
accounted for, and thatpayments were made froman offshore account without authorization.

7 The investigations by EACC did not establish any wrong
doing, and a recommendation was made for closure of the
file.
7 The DPP concurred with EACC recommendation forclosure and advised that the matter be referred to the
Kenya National Audit Office.

l)Tatu City: Fraudulentchange and/or transfer ofshares, shareholding anddirectorship in Purple
Saturn properties and forgeries.

7 Joint investigation team (EACC, DCI and DPP) formed
7 The matter is still under investigationm)

Wildlife
Crime

7

Feisal case:Feisal andothers werecharged withdealing withpieces of elephant tusks.

Rampant in Eldoret, Malaba and Nakuru
12 suspects charged in Court in Nakuru on 2nd
September, 2016.
7 All accused out on bond. Warrants obtained for 1 suspect.
5 Suspects charged: Suspect charged with: conspiracy todefraud, fraudulent accounting by officers, stealing, money
Laundering

Convicted with jail term of 20 years and fined Kshs. 20
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Thailand7
Ivory Case:
Case no. 1132 of 72015 where a
consignment of
511 pieces ofivory weighing
3127kg said tohave originatedfrom Kenya
and confiscatedin Thailand

10 Persons charged: Case Pending Before Mombasa Court Mutual Legal
Assistance is ongoing

MAT has enhanced the institutional arrangement and administrative actions geared towards
streamlining and enhancing the fight against corruption and other organized crimes. These include:i.

Development of CBK guidelines on large cash transactions: The Central Bank of Kenya issued
additional guidelines in respect of large cash transactions to tighten compliance with the POCAMLA.13
ii. Establishment of a High Court Division on Anti-Corruption and Economic Crimes: The Chief Justiceestablished the Anti-Corruption and Economic Crimes Division to expedite the hearing and conclusionof cases.14
iii. Appointment of additional special magistrates: an additional 13 special magistrates were appointed to
specifically deal with corruption and economic crimes cases. They ensure the cases are heard on adaily basis.
iv. Prosecution guided investigations: The ODPP has assigned special prosecution counsel to specificallydeal with corruption and economic crime cases. The Prosecutors liaise with investigators thus
shortening the period that would be spent in reviewing the investigation reports before a decision onwhether or not to prosecute.
v. Establishment of a specialized prosecution unit for corruption offences in the ODPP.
vi. Establishment of a centralized government data platform: MAT is overseeing a project to establish acentralized data platform held by all government agencies; spearheaded by the National Intelligence
Service.
vii. Establishment of County MAT teams: the MAT initiative is replicated in all the 47 counties and theseteams have been trained and their capacities built.
viii.Vetting of officers under MAT: The vetting process is continuous and all officers under MAT arevetted to ensure they are people of integrity.
ix. MAT has also contributed to the development of legislation that touch on anti-corruption matters
including:a. Ethics and Anti-Corruption Laws Amendment Act, 2016, resulting in the number of Commissioners being enhanced from 3 to 5.
b. Draft Anti-Corruption Laws (Amendments) Bill, which operationalizes the proposals made by the
Task Force as well as recommendations of the 1st Cycle Review of Kenya under UNCAC. Most
notably, it proposes amendments to the POCAMLA to allow the FRC to take administrative action;
levy civil monetary penalties and clarify the operational independence of the FRC.15
c. The Whistleblower Protection Bill: this will be overarching legislation that provides for theprocedure of disclosure of information relating to improper conduct in the public and private
sectors as well as for the protection of persons who make such disclosure against victimization.
d. Computer and Cyber Crimes Bill, 2016: Stipulates the need to tame abuse of web-based systems,
reduce or eliminate cybercrimes arising from increased use of new technology. It also seeks toprotect online cash transactions.
e. Bribery Act: this Act outlines stringent measures to check graft between the public and private

Customers are required to declare names of beneficiaries of cash withdrawals above Kshs 1million and justify why such largetransactions cannot be done using electronic transfer channels. The CBK Banking Circular No. 1 of 2016 ʻAdditional Guidelineson Large Cash Transactionsʼ is available on https://www.centralbank.go.ke/uploads/banking_circulars/.
14
See Gazette Notice No. 136 of 11th December 2015.
15
This is now catered for by Section 4 of the Proceeds of Crime and Anti-Money Laundering (Amendment) Act, 2017.
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sector. It criminalizes both the offering and receiving of bribes by any person including local orforeign entities.

IV. CONCLUSION AND RECOMMENDATIONSThe MAT has been largely successful in recovering assets as outlined above. However, the biggest
challenge facing it is the lack of legal anchorage in law and thus the legality of some MAT joint operations arechallenged by culprits. There is need to anchor MAT in law to protect it from any external influences likechange of Government. Sometimes, individual institutions face capacity constraints. It is recommended that
there be continuous funding for the MAT to be enhanced. The capacity of officers under MAT agencies need
to be built continuously through training and cooperation with other similar bodies. Moreover, there needs tobe a central depository for data including cases, and other resources not only on asset recovery, but also
economic crimes and corruption-related cases. All in all, it is a great step towards eradicating corruption andneeds to be borrowed as a best practice for states that do not have such initiatives.

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