Anglo Leasing Scandal: High Court Orders Retrial for Kamani Brothers, Former PSs
The High Court in Nairobi has reopened a major chapter in one of Kenya’s most infamous corruption cases — the Sh3.5 billion Anglo Leasing scandal — by ordering the retrial of five high-profile accused persons, including prominent businessmen Deepak and Rashmi Kamani, and three former permanent secretaries: Joseph Magari, Dave Mwangi, and David Onyonka.
Delivering the ruling, Anti-Corruption High Court Judge Benjamin Musyoki set aside their earlier acquittal by a trial magistrate on January 19, 2024, stating that the Director of Public Prosecutions (DPP) had indeed established a prima facie case that warrants the five to be placed on their defence.
Why the Acquittal Was Quashed
The DPP had filed an appeal against the earlier decision that saw all five individuals acquitted of corruption-related charges. According to Justice Musyoki, the trial court erred in its decision, given the substantive evidence presented by 37 witnesses during the initial trial.
“I hereby set aside the acquittal by the trial magistrate… and order the accused persons to be put on their defence on counts 2, 3, 4, 6, and 7,” said Justice Musyoki.
He emphasized that the accused were involved in authorizing a security-related project without budgetary allocation, a move that suggests malicious intent and procedural irregularities.
The Role of the Kamani Brothers and Apex Finance
The Kamani brothers, together with their late father Rasmi Chamanlal Kamani, were accused of benefiting from the flawed procurement deal through a company known as Sound Day Corporation, which allegedly failed to supply the promised security equipment for the Kenya Police Laboratory.
Justice Musyoki stated that the payments made for the undelivered equipment were processed through an offshore account under Apex Finance Corporation, which was registered in Mauritius in 1998. The Kamani brothers, however, denied links to Apex Finance.
Still, the judge ruled that a reasonable explanation is required:
“The accused persons must explain why they received the money. For them to receive such large amounts through Apex Finance Corporation, they must have had knowledge that these were proceeds of crime.”
Former Permanent Secretaries Under Scrutiny
The former PSs – Magari, Mwangi, and Onyonka – were implicated for approving and authorizing the questionable project without proper budgetary provisions. The ruling indicated that the government’s procurement guidelines were deliberately flouted, raising serious questions about collusion and abuse of office.
Key Observations from the Judge
Despite multiple witnesses testifying, the court observed some critical gaps in the prosecution’s approach during the initial trial. Notably, Edwin Nyasenda, the then Commissioner of Police and head of the user department for the procurement, was not called as a witness. This, however, did not exonerate the accused, as the rest of the evidence was deemed sufficient for a retrial.
“It was a mistake not to call Nyasenda, but the weight of other testimonies proves there was no delivery of the procured items,” Justice Musyoki added.
The Anglo Leasing Scandal: A Recap
The Anglo Leasing scandal, which erupted in the early 2000s, involved ghost contracts awarded to shadowy foreign companies for security and forensic services at inflated prices. It is estimated that the Kenyan government lost billions in the process.
The scandal has remained a symbol of entrenched corruption in Kenya’s procurement system, involving both local political figures and international actors.
The Kamani family has been at the center of the case for over two decades, with repeated calls from the public and anti-corruption bodies for justice and accountability.
Next Steps: Retrial at Milimani Law Courts
Following the High Court’s order, all five accused persons are expected to appear before the Milimani Anti-Corruption Chief Magistrate’s Court, where they will now be required to enter their defence.
Legal analysts believe this retrial marks a renewed effort by the Judiciary to address high-level graft in Kenya.
“This is a big win for transparency and accountability. It shows that acquittals in corruption cases are not always the final word,” said legal analyst Naomi Kamau.
Public Reactions and Political Implications
The ruling has sparked mixed reactions from the public, with many applauding the judiciary for not bowing to political or economic pressure. Anti-corruption advocates argue that this is a crucial moment for restoring faith in Kenya’s justice system, particularly in the handling of mega corruption cases.
There’s also renewed pressure on the Ethics and Anti-Corruption Commission (EACC) and the Office of the DPP to strengthen their cases, avoid procedural lapses, and ensure successful prosecution this time.
What This Means for the Fight Against Corruption
This retrial order is likely to set a precedent for similar high-profile corruption cases that had previously ended in acquittals. It also signals to public officers that oversight failure and procedural irregularities will no longer be tolerated, even after years of silence.
As Kenya continues to battle with financial mismanagement and public trust issues, this ruling could be a turning point — if the retrial results in accountability.
Conclusion
With the Anglo Leasing scandal retrial now back in the spotlight, Kenyans are watching closely. The Kamani brothers and former permanent secretaries must now defend themselves in court, this time under greater public scrutiny and legal rigor. Whether this retrial will finally deliver justice in one of Kenya’s longest-running corruption sagas remains to be seen.