Three Kenyan companies, politician's sister under probe in alleged Ksh.25B money laundering syndicate

The Asset Recovery Agency (ARA) and detectives drawn from the Financial Crimes Investigation Unit are probing what is suspected to be a multibillion shilling money laundering syndicate involving three companies and directors from Kenya and Nigeria.

More than Ksh.25 billion has passed through the three accounts, with the asset recovery body freezing Ksh.2.5 billion of the funds suspected to have been acquired through fraud from the United Arab Emirates, the U.S and several European countries.

Inquiries by Interpol and European authorities led ARA to crack the whip on the three companies, freezing some Ksh.5.6 billion in their accounts at a local bank and a Nigerian-based bank.

Directors in question include two Kenyans, one of them described as relative of a female Nairobi politician; two Nigerians have also been questioned by ARA.

Sources within the inquest revealed to Citizen TV that the directors claim to be operating a money transfer business to facilitate Kenyans and Nigerians in the diaspora to send and receive money from their loved ones, denying allegations of money laundering.

Detectives however believe the firms are handling proceeds of crime involving multiple money transactions conducted through the bank accounts in U.S dollars and Kenya shillings, mainly from foreign jurisdictions including the U.S, UAE, and European countries, whose source may not be legitimate.

The billions in the local bank and Nigerian bank were frozen by the High Court in April after ARA applied to block the transfer or withdrawal of the money, pending the filing of a petition to have the money forfeited to government.