Privatization Chief Faces Sh112m Corruption Case

Ethics watchdogs raise alarm over Janerose Omondi’s appointment despite ongoing asset recovery proceedings

The appointment of Dr Janerose Sande Omondi as acting Chief Executive Officer of the Privatization Commission has sparked a storm of controversy after it emerged she is battling a corruption case involving unexplained wealth of Sh112.3 million.

Dr Omondi took over the helm of the commission in June, replacing Dr Joseph Koskey who had completed his two terms in office.

However, court documents reveal that the Ethics and Anti-Corruption Commission has filed a case seeking to recover assets worth millions of shillings allegedly acquired through corrupt means.

The revelation has raised serious questions about the government’s commitment to fighting corruption and the due diligence process for key appointments, particularly for positions overseeing the privatization of state assets worth billions of shillings.

In November last year, High Court Judge B.M. Musyoki issued orders restraining Dr Omondi and her husband James Ambuso Omondi from disposing of 19 properties valued at Sh21.6 million.

The court granted the interim injunction sought by EACC following allegations that the properties were acquired through corrupt means.

The couple, along with their business entities Ngima Medicare and Laboratory Supplies and Askaville Meadows, are accused of amassing wealth disproportionate to their legitimate income.

According to court documents, EACC investigations revealed that after accounting for their known legitimate sources of income, there remained an unexplained sum of Sh112,267,914.45.

The properties in question were acquired between January 2012 and April 2014, a period coinciding with James Ambuso Omondi’s tenure as Finance and Administration Manager at the Water Resources Management Authority.

He served in this position from July 2011 to December 2016, during which he allegedly engaged in corrupt practices.

The frozen assets are spread across Kisumu, Kajiado and Kwale counties.

In Kisumu, the properties are located in Buoye, Korando, Kochieng and Sidho East areas. Those in Kajiado are situated in Kaputei North, Kitengela and Loodariak, while one property is located in Kwale’s Mahuruni area.

James Ambuso Omondi was convicted on four counts of corruption-related offences by the Chief Magistrate’s Anti-Corruption Court in 2019 and fined Sh7.4 million, which he paid.

His appeal to the High Court was dismissed, and he has since filed a further appeal at the Court of Appeal, which remains pending.

In granting the asset freeze orders, Justice Musyoki emphasised that the burden was on the defendants to explain their wealth.

“When faced with such allegations, it is upon the defendants to explain their wealth, failure to which the same becomes liable for forfeiture to the government,” the judge ruled.

The court noted that without the restraining orders, there was likelihood the respondents would dispose of the properties, making it difficult for the government to recover them if the case succeeded.

However, the injunction allows the couple to continue using and occupying the properties while prohibiting any transfer or disposal.

Dr Omondi’s appointment comes at a time when the government has intensified efforts to reform and streamline state corporations, with privatization seen as a key strategy to boost efficiency and ease fiscal pressures.

Before her elevation, she served as transactions manager at the commission for over seven years, where she played a key role in structuring privatization deals.

President William Ruto assented to the Privatization Bill 2023 in October that year, empowering the National Treasury to privatize 25 identified state-owned entities without parliamentary approval.

The commission oversees this ambitious privatization agenda, which includes plans for partial privatization of Kenya Pipeline Company through an Initial Public Offer on the Nairobi Securities Exchange.

The timing of Dr Omondi’s appointment has drawn criticism from governance experts and civil society organizations, who argue that individuals facing corruption-related proceedings should not be appointed to key government positions, particularly those involving management of public assets.

A governance expert, who requested anonymity, said the appointment undermines the government’s anti-corruption stance and raises questions about the vetting process for senior appointments.

“How do you appoint someone to oversee privatization of public assets when they are facing allegations of corruptly acquiring unexplained wealth?” the expert posed.

The matter is set to proceed to full hearing where EACC will seek to prove that the properties were acquired through corrupt means and should be forfeited to the state.

Legal experts note that while the case is still pending determination, the appointment of someone facing such serious allegations could compromise public confidence in the privatization process, especially given the billions of shillings worth of state assets set to be privatized.

The case adds to a growing list of asset recovery suits filed by EACC against public officials suspected of economic crimes, as the commission intensifies its mandate to recover public resources lost through corruption.

Dr Omondi brings experience in finance, auditing, investment, and project management to her new role, which are critical to the commission’s mandate of driving private sector participation in public assets. However, the shadow of the corruption case threatens to overshadow her technical qualifications and raises fundamental questions about integrity in public service.