Obado’s Sh505M Corruption Case Headed for Out-of-Court Settlement

Former Migori Governor Okoth Obado’s long-running corruption case involving Sh505 million may soon conclude through an out-of-court settlement, following formal negotiations with the Director of Public Prosecutions (DPP).

During proceedings at the Milimani Chief Magistrate’s Court yesterday, defense lawyers informed Chief Magistrate Charles Ondieki that they had formally written to DPP Renson Ingonga on April 25, 2025, seeking an alternative resolution to the criminal trial that has dragged on since 2018.

“We have held several meetings and deliberations with the DPP and EACC following the letter,” the defense team told the court.

“We believe the negotiations are at an advanced stage and anticipate a conclusion within a month.”

The defense requested an adjournment to allow settlement talks to be finalized, proposing a mention date of July 1, 2025, to update the court on the negotiations’ progress.

In a significant revelation, Obado and his 26 co-accused disclosed that they had already settled two other asset recovery lawsuits out of court.

These cases, previously pending before the High Court, involved unexplained wealth and proceeds of crime worth Sh1.9 billion and Sh73 million.

The settled cases implicated Obado, his four children, businessman Jared Peter Oluoch Kwaga, and associated companies.

According to court submissions, they agreed to pay a total of Sh253 million, which the Ethics and Anti-Corruption Commission (EACC) accepted as a fair settlement.

State prosecutors confirmed receipt of the April letter and acknowledged ongoing discussions between the Office of the DPP, EACC, and defense counsel aimed at terminating the case through Alternative Dispute Resolution (ADR).

“The plea bargain process initially began in October 2024, but negotiations stalled. They have now resumed, and we confirm they are progressing,” the prosecution stated, adding that they had requested further clarification from EACC on May 6 regarding issues raised by the defense.

The EACC representative expressed willingness to participate in the ADR process, provided negotiations adhered to the legal framework outlined in Sections 137A–137O of the Criminal Procedure Code.

Seven years with little progress

Magistrate Ondieki, in his ruling on the adjournment request, noted the case’s troubled history.

Filed in 2018, the trial has faced numerous delays including a magistrate transfer and language barriers affecting some of the accused.

In the seven years since the trial began, only one witness has testified and is yet to complete their testimony.

Obado also cited his ongoing separate murder trial, in which he is accused of killing his former lover Sharon Otieno, as another reason to postpone proceedings.

The corruption case involves Obado, his four children, and numerous co-accused in allegations of misappropriation of public funds amounting to Sh505 million during his tenure as Migori Governor.

The court granted the adjournment, with the case scheduled to be mentioned on July 1, 2025, when parties are expected to update the court on the settlement negotiations.