This archive report was first published on 11 September 2019.
Kenya's government has proposed a new plan to tackle corruption by investing seized assets in state bonds.
According to the Treasury, assets seized from suspects linked to corruption and money laundering will be sold and the money invested in government bonds if Parliament adopts proposals meant to allocate the properties for public good.
On Tuesday, September 10, 2019, the Treasury published draft guidelines on how proceeds of crimes, money laundering, and corruption will be allocated for public benefit.
The proposed regulations provide for the formation of a Criminal Assets Recovery Fund to receive, manage, and transfer all property recovered by the Assets Recovery Agency (ARA) and the Ethics and Anti-Corruption Commission (EACC).
The Fund will invest the money received from the auctioning of properties like land, cars, and homes in government securities and transfer some of the cash to the government's main account for allocation to projects like roads, power plants, and construction of dams.
Principal Secretary Julius Muia said the State expects the proposed fund to be operational in the current financial year, which will end in June.
“Our intentions are very clear that proceeds from crimes and assets that are recovered should be applied for use in ways which will be for public advantage,” Dr Muia said in a telephone interview.
Official data shows that the State agencies recovered assets linked to graft worth Sh3.8 billion in the year to June 2018, up from Sh300 million a year earlier.
