EACC Auctions High-Value Properties Seized From Obado Allies To Recover Sh505 Million Looted Funds

The Ethics and Anti-Corruption Commission has commenced the auction of ten high-value properties seized from associates of former Migori Governor Okoth Obado in a sweeping recovery operation targeting Sh505 million allegedly stolen from public coffers.

The anti-graft agency has engaged three prominent auctioneers – Galaxy, Keysian, and Astorion – to dispose of assets belonging to Jared Kwaga, Joram Otieno, Caroline Obwa, and Otago Ojuki, all linked to the corruption scandal that rocked the Migori County government between 2013 and 2017.

The quartet, alongside Obado and 13 other co-accused, faced serious charges at the Milimani Anti-Corruption Court including economic crimes, money laundering, and unlawful acquisition of public property.

Court documents reveal that the suspects accumulated their contested wealth through companies that secured lucrative contracts from the county government to supply various goods and services during Obado’s administration.

EACC investigations exposed an elaborate scheme where these firms served as conduits for siphoning public funds through fictitious procurement contracts and other fraudulent arrangements.

The properties now facing the hammer represent assets forfeited by the accused as part of a plea bargain agreement aimed at resolving the corruption case through alternative dispute resolution mechanisms.

Kwaga stands to lose the most valuable assets, including six properties spread across Nairobi and Migori counties.

Among these is a maisonette and two apartments located on Savannah Road within Nairobi’s upmarket Greenspan Estate.

In Migori’s Suna East/Wasweta area, he will forfeit residential houses featuring two identical blocks, each containing ten apartments.

Perhaps most significantly, Kwaga will lose the imposing Sunrise Centre, a multi-storey office complex strategically located in Suna along the busy Migori-Kisii road.

The commercial property comprises two detached buildings and represents a substantial investment.

Additionally, his Town House Number C-1 in Nairobi’s exclusive Loresho Ridge Estate within the Mountain View area will also go under the hammer.

Otieno’s forfeiture involves a developed plot measuring 0.119 acres in Suna East/Wasweta, positioned along the Migori Town-Isebania highway.

The property features two identical blocks of one bedroom rental units, complete with associated infrastructure works.

Obwa faces the loss of two strategic properties.

The first is a three-bedroom apartment in Nairobi’s Riara area, while the second is a parcel of land in Kisumu municipality within the prestigious Savannah Court in Lolwe Estate.

The Kisumu property is particularly valuable, featuring a four-storey apartment block.

Obwa had previously been pursued by EACC alongside former Nairobi County head of accounting Stephen Ogaga Osiro in a separate Sh318 million recovery suit.

Ojuki’s property, designated for office use, sits in Kamagambo, Rongo township, just off the Rongo town-Homa Bay road.

The comprehensive development includes a three-bedroom bungalow alongside two blocks of semi-detached two-bedroom rental units, creating a mixed-use residential and commercial complex.

The commission has indicated that proceeds from the auction will be channeled back into the public development budget, specifically funding essential services such as healthcare and education.

This approach aligns with EACC’s policy of ensuring recovered assets directly benefit the communities from which they were allegedly stolen.

The auction represents a significant milestone in EACC’s increasingly aggressive approach to asset recovery, particularly through alternative dispute resolution mechanisms.

This strategy has proven effective in avoiding prolonged court battles while ensuring swift recovery of public funds.

The Anti-Corruption and Economic Crimes Act provides the commission with robust powers to engage individuals possessing unexplained assets or suspected of illegally acquiring public property.

This legal framework enables recovery without the delays typically associated with lengthy court proceedings, making it an attractive option for both the commission and defendants seeking to resolve their cases expeditiously.

The Migori corruption case stands as one of the most significant county-level graft scandals in Kenya’s devolved system of government.

The systematic looting allegedly occurred during the critical early years of devolution when oversight mechanisms were still being established and refined.

The successful recovery of these assets sends a strong message about the consequences of misappropriating public resources.

For the residents of Migori County, the recovery represents a partial restoration of resources that should have been used for development projects and service delivery during Obado’s tenure.

The returned funds will provide an opportunity to address some of the development gaps created by the alleged theft of public resources.

The auction process is expected to attract significant interest from property investors, given the strategic locations and substantial value of the assets involved.

The properties span some of Kenya’s most desirable real estate markets, from Nairobi’s upmarket estates to commercial centers in rapidly growing towns like Migori and Rongo.

This case exemplifies EACC’s evolving strategy in combating corruption, emphasizing swift asset recovery over protracted criminal prosecutions.

The approach has proven particularly effective in cases where defendants are willing to cooperate in alternative dispute resolution processes, leading to faster recovery of public assets while reducing the burden on the court system.​​​​​​​​​​​​​​​​