A former Kilifi Principal Land Registrar and his associates have lost assets worth Sh426.85 million after the Anti-Corruption and Economic Crimes Court found they had not adequately explained how they acquired the wealth.
Felix Mecha Nyakundi, his wife Stellah Nyaboke Otwori and companies associated with the family will forfeit the assets to the Government of Kenya following a judgment delivered on September 18, 2026, by Justice B.M. Musyoki.
The Ethics and Anti-Corruption Commission (EACC), which investigated the matter, said the court found a mismatch between the assets accumulated by Nyakundi and his associates and their known legitimate income.
The assets ordered forfeited include Sh233.58 million held in bank and M-Pesa accounts, properties valued at Sh177.11 million, vehicles worth Sh11.9 million and Sh4.26 million in cash recovered during searches at the respondents' residences.
A major property affected by the judgment is Bantu Hotel on Kangundo Road in Nairobi, which is valued at Sh107.7 million.
The order also covers the Saro Wiwa apartment block in Utawala, Nairobi, worth Sh35 million, as well as a Mombasa penthouse valued at Sh19 million.
Eleven parcels of land located in Kilifi and Thika, with a combined value of Sh15.41 million, are also part of the assets to be surrendered.
The vehicles listed by the court are a Land Cruiser Prado, a Mercedes-Benz and a Toyota Hilux.
The EACC said its inquiry covered Nyakundi's financial affairs and those of his associates from January 2013 to March 2024.
During that period, the Commission established that the respondents had accumulated assets valued at Sh771.89 million.
The amount comprised Sh467.76 million that passed through different bank accounts and M-Pesa numbers, landed properties valued at Sh287.51 million, motor vehicles worth Sh20.06 million and Sh4.26 million in cash recovered from the respondents' homes.
The Commission also examined Nyakundi's earnings during the period under investigation. His gross monthly salary stood at Sh69,660 in 2013 before rising to Sh115,630 in 2024.
According to the EACC, only assets worth Sh58.17 million were satisfactorily explained by Nyakundi and his associates, leaving the rest exposed to recovery proceedings.
“During the investigations, Nyakundi and associates could only satisfactorily explain the acquisition of assets valued at Sh58,170,000. Consequently, the Commission instituted proceedings in accordance with Section 55 of the Anti-Corruption and Economic Crimes Act (ACECA) for recovery of the assets disproportionate to his known legitimate sources of income and which could not be satisfactorily explained,” the EACC said.
Section 55 of ACECA provides for recovery proceedings where the EACC, after conducting an investigation, is satisfied that an individual possesses unexplained assets and has been given a reasonable opportunity to account for the difference between the wealth and known legitimate income.
The proceedings are civil in nature and involve recovery of assets rather than a criminal conviction.
In a 2023 High Court ruling, the court stated that the EACC has to demonstrate, on a balance of probabilities, that the assets in question are disproportionate to an individual's known legitimate income. The person facing the recovery proceedings then has the evidentiary burden of satisfactorily showing the legitimate source of the assets.
The same provision has been used in other asset-recovery cases handled by the Commission.
In October 2024, the High Court ordered the forfeiture of bank transactions and a residential building after finding that they amounted to unexplained assets under Section 55 of ACECA.
The EACC's 2024/25 report also identified a recovery case involving Nyakundi and others. The matter, filed as ACEC No. E022 of 2025, initially involved unexplained wealth valued at Sh713 million.
The Commission welcomed Justice Musyoki's decision, linking it to its efforts to recover public resources and prevent proceeds associated with corruption or unethical conduct from being retained by individuals.
“The Commission welcomes this landmark decision as a significant step towards recovering public resources and ensuring that individuals involved in corruption and unethical conduct do not benefit from proceeds obtained through such conduct,” the EACC maintained.
The Commission said the assets covered by the judgment will be forfeited to the Government of Kenya in line with the court's orders.
The case adds to ongoing EACC efforts to use asset-recovery proceedings against wealth that cannot be satisfactorily accounted for through legitimate sources of income.