Home » Kivaa Ventures Ltd Forfeits Sh10 Million to State as High Court Declares Funds as Proceeds of Crime

Kivaa Ventures Ltd Forfeits Sh10 Million to State as High Court Declares Funds as Proceeds of Crime

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The High Court Anti-Corruption Division, Justice Esther Maina, has declared Sh10 million held by Kivaa Ventures Ltd as proceeds of crime.

The court ordered the forfeiture of the funds to the state after the company failed to provide a satisfactory explanation for the source of the money.

The Sh10,004,905 had been deposited in a KCB Bank branch located in Kilimani, but the court found that Kivaa Ventures Ltd could not account for the origin of the funds.

Furthermore, there were suspicious withdrawals made from the account, raising further concerns about the legitimacy of the transactions.

Justice Esther Maina emphasized that Kivaa Ventures Ltd did not produce any supporting documents or evidence to substantiate the existence of the business from which the money allegedly originated.

The lack of registration documents and transaction records, such as receipts, invoices, or accounting books, added to the court’s suspicion regarding the source of the funds.

“The absence of any concrete evidence regarding the business’s existence and the trading activities leading to the significant deposits in the account raises serious doubts about the legitimacy of the money,” stated the Anti-Corruption Division Judge.

The firm’s explanation that illness prevented them from providing the necessary documents was deemed insufficient and contradictory, leaving the court unconvinced.

One of the key indicators of potential money laundering highlighted during the proceedings was the pattern of large deposits followed by quick cash withdrawals. The court observed that the Sh10 million was deposited through Mpesa in three tranches on May 5th and May 11th, 2021.

Shortly after, withdrawals of Sh990,000 and Sh950,000 were made between May 5th and May 11th, 2021, apparently to evade scrutiny on withdrawals exceeding Sh1 million, as per legal requirements.

As a result of the High Court’s ruling, the Sh10 million will be forfeited to the state, and the Assets Recovery Agency will oversee the transfer of the funds to the government.

This ruling sends a strong message about the court’s commitment to combatting financial crimes and money laundering in Kenya.

Justice Esther Maina’s decision highlights the importance of transparency and accountability in financial transactions, with firms being required to provide adequate evidence and documentation to support the legitimacy of their funds.