The Court of Appeal has upheld a High Court decision ordering the Assets Recovery Agency (ARA) to unfreeze KSh537 million linked to former Nairobi Governor Mike Sonko, bringing to a close a legal dispute that has lasted nearly six years.
The ruling, delivered on Wednesday, March 25, 2026, dismissed ARA’s application to continue freezing the funds, with judges finding that the appeal lacked legal merit.
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The court held that there was no basis to stay the High Court judgment that had earlier dismissed the forfeiture case and ordered the release of Sonko’s bank accounts.
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“There was no order capable of being stayed since the High Court decision was a dismissal of the case,” the appellate judges noted in their ruling.
Mike Sonko // X

Background of the Case

The dispute dates back to 2020 when ARA froze several bank accounts holding more than KSh537 million linked to Sonko.
The agency alleged that the money was proceeds of crime connected to suspected money laundering and sought to have the funds forfeited to the state under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA).
Key developments in the case include:
  • 2020: ARA freezes Sonko-linked accounts holding KSh537 million
  • October 2025: High Court dismisses ARA’s forfeiture case, citing insufficient evidence
  • March 2026: Court of Appeal rejects ARA’s attempt to maintain the freeze
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High Court Decision

In October 2025, the High Court dismissed ARA’s case after finding that the agency had not provided sufficient evidence to prove that the funds were illegally acquired. The court ordered the immediate unfreezing of the accounts, allowing Sonko to access the money.ALSO READ: Mike Sonko Pledges to Clear Mortuary Bills for Flood Victims as He Criticises Sakaja
ARA later moved to the Court of Appeal seeking a stay of execution, arguing that Section 97 of POCAMLA allows preservation orders to remain in place during an appeal.

Court of Appeal Findings

The Court of Appeal rejected ARA’s arguments and ruled that the High Court judgment was a “negative order”, meaning it only dismissed the case and did not require any action that could be suspended.
The judges emphasised that:
  • A dismissal of a suit cannot be stayed.
  • Execution can only apply to costs.
  • There was no legal basis to maintain the freeze on the funds.
The ruling effectively clears Sonko to access the KSh537 million as the legal process moves forward.
Mike Sonko // X

Wider Legal Context

The decision adds to the series of court cases involving the former Nairobi governor since his removal from office in 2020. Sonko has faced multiple legal battles related to corruption and financial management during his tenure at City Hall, with some cases dismissed due to a lack of evidence.