EXPLOSIVE: BBS Mall Owner Wants Gachagua Reprimanded After Linking Him To Money Laundering, Minnesota Fraud

The gloves are off in what has rapidly escalated into one of Kenya’s most explosive political and business controversies this year, as the owner of Nairobi’s iconic Business Bay Square Mall has launched a blistering legal assault against former Deputy President Rigathi Gachagua over remarks linking the multibillion-shilling commercial empire to an international money laundering scandal.

In a hard-hitting petition filed with the National Cohesion and Integration Commission on January 5, lawyers representing the BBS Mall proprietors have accused Gachagua of making reckless, inflammatory and ethnically charged statements that threaten to tear apart the social fabric of Kenya’s most vibrant commercial hub and destroy the livelihoods of thousands of innocent traders.

The political firestorm erupted after Gachagua, speaking during a Sunday church service at AIPCA Kiratina in Githunguri on January 4, made sensational claims connecting Eastleigh’s sprawling shopping center to proceeds from a massive fraud scheme in Minnesota, United States, where funds meant for people living with disabilities were allegedly siphoned into Kenya.

“That money was meant to help people living with disabilities. It was stolen, brought to Kenya and invested in land, houses, and the construction of a mall,” Gachagua thundered from the pulpit, before dropping a political bombshell. “There is a mall in Eastleigh that was built using that money, and the owner is a business partner of the President.”

But Gachagua did not stop there. In remarks that have sent shockwaves through Kenya’s business community and diplomatic circles, the Democracy for Citizens Party leader urged US President Donald Trump to bypass Kenya’s legal system entirely and conduct a Venezuela-style military operation to seize suspects linked to the alleged fraud.

“We are asking you Trump, don’t bother about the extradition process in Kenya, wewe fanya vile ulifanya Venezuela, because Ruto amesema jamaa asitolewe huku,” Gachagua said in Swahili, referencing the dramatic capture of Venezuelan President Nicolas Maduro by US forces just days earlier.

The response from BBS Mall’s legal team, led by MMA Advocates, has been swift and uncompromising. In their meticulously crafted 10-page petition, the lawyers argue that Gachagua’s statements go far beyond legitimate political critique and cross into dangerous territory that could ignite ethnic tensions, destroy businesses and undermine national cohesion.

“These utterances have the effect of demonising an entire community and economic zone without factual or legal basis,” the petition states, adding that the former deputy president’s words amount to “collective punishment and ethnic stereotyping, which this country has suffered from in the past.”

The lawyers have painted a damning picture of the potential fallout from Gachagua’s remarks. Investors are getting cold feet. Tenants are reconsidering expansion plans. Customers are staying away. The reputation of one of East Africa’s largest shopping complexes hangs in the balance, they argue, all because of unsubstantiated allegations from a high-ranking political figure.

Rigathi Gachagua.

“Our tenants are registered taxpayers, compliant with Kenyan law, and contribute significantly to the national economy,” the petition notes. “Yet they are now being unfairly targeted in political rhetoric that threatens their safety, dignity and livelihoods.”

The timing could not be more explosive. Gachagua’s remarks came just as US federal authorities intensified their crackdown on alleged fraud in Minnesota’s social services programs, with the FBI and Department of Homeland Security conducting sweeping investigations that have ensnared dozens of suspects, most of Somali descent.

The Minnesota scandal itself is staggering in its scope. Federal prosecutors have charged 92 people, with 62 already convicted, in connection with what FBI Director Kash Patel has called “just the tip of a very large iceberg.” The schemes have targeted everything from pandemic-era child nutrition programs to disability housing services, with losses potentially running into the billions.

The most notorious case involved Feeding Our Future, a nonprofit that allegedly bilked taxpayers out of USD 250 million by submitting fake meal counts and invoices during the COVID-19 pandemic. Now, the Trump administration has frozen child care funding to Minnesota and four other states, demanding comprehensive audits and threatening to cut off billions in federal support.

Against this backdrop, Gachagua’s decision to link Kenya’s commercial sector to the Minnesota mess has triggered a political earthquake. Eldas Member of Parliament Adan Keynan rushed to the defense of the BBS Mall, accusing Gachagua of making “false and malicious claims” that are “chronologically impossible.”

Keynan revealed explosive details about the mall’s legitimate history, noting that the property was lawfully acquired in 2009 and initially housed Comesa Mall before being redeveloped between 2018 and 2022 into what is now described as the largest shopping complex in East and Central Africa.

“The property was later redeveloped into what is now the largest mall in East and Central Africa. Construction commenced in 2018 and was successfully completed in 2022,” Keynan said, adding pointedly that the alleged Minnesota fraud occurred between 2022 and 2025, making it impossible for those funds to have financed a building already completed.

The lawmaker described the mall’s proprietor as a respected businessman who has operated in Eastleigh for more than 25 years without ever being linked to criminal activity, demanding that Gachagua retract his claims and issue an unreserved public apology.

But Gachagua has shown no signs of backing down. In the same church address, he unleashed a blistering attack on President William Ruto, accusing him of shielding alleged drug barons in his Cabinet and protecting individuals linked to the Minnesota fraud.

“Nimeona jana ukisema mambo ya wale wanauza cocaine na heroin, ati utadeal nao, kwanza futa wale mawaziri uko nao wawili wanajulikana kwa kuuza madawa,” Gachagua said, daring the President to begin his anti-narcotics crackdown within his own government.

Trade Cabinet Secretary Lee Kinyanjui has hit back hard, accusing Gachagua of recklessness and warning that dragging foreign governments into Kenya’s internal disputes could have catastrophic consequences. “How can a leader seek to throw his own country into the deep end merely to score personal revenge?” Kinyanjui demanded.

The BBS Mall petition lays out stark demands. It calls on the NCIC to investigate whether Gachagua’s remarks constitute hate speech or ethnic contempt under Kenyan law, issue formal censure if violations are found, and recommend prosecution where appropriate. The lawyers also want media houses cautioned against amplifying such inflammatory statements.

“The effect of these remarks is real, not hypothetical,” the petition warns. “They threaten the reputation and operations of lawful businesses, destabilize commercial relations, and can inflame ethnic animosity.”

For the thriving business community in Eastleigh, a commercial powerhouse that employs thousands and contributes hundreds of millions in tax revenue annually, the stakes could not be higher. The petition argues that branding an entire district as a criminal enclave risks fueling harassment, resentment and hostility against law-abiding residents.

“It is dangerous for a leader of Mr Gachagua’s stature to repeatedly suggest that businesses in Eastleigh are inherently criminal,” the document states. “Such statements amount to collective punishment and ethnic stereotyping, which this country has suffered from in the past.”

As the NCIC weighs its response, Kenya finds itself at a crossroads. Will it allow inflammatory political rhetoric to destroy legitimate businesses and communities? Or will it draw a line in the sand and enforce laws designed to protect national cohesion?

The petition concludes with a powerful appeal that resonates beyond the immediate controversy. “Kenya’s diversity is a strength, not a weakness. Leaders must choose words that unite rather than divide.”

As of press time, the NCIC had not publicly responded to the explosive complaint, leaving the nation to wonder whether Kenya’s foremost cohesion watchdog will bark or bite when confronted with one of its most significant tests in recent memory.

What is clear is that this battle is far from over. With political tensions running high, business reputations on the line and international fraud investigations casting long shadows, the Gachagua-BBS Mall saga threatens to dominate headlines for weeks to come.

The question now is whether Kenya’s institutions are strong enough to referee this explosive clash between political ambition and commercial legitimacy, or whether the country will once again allow ethnic profiling and inflammatory rhetoric to poison its social and economic fabric.