Kenya: Court of Appeal Dismisses Ara Bid to Freeze Sonko Wealth, Cite 'Negative Order' Principle

25 March 2026
Capital FM (Nairobi)

Nairobi — The Court of Appeal has dismissed an attempt by the Assets Recovery Agency (ARA) to freeze millions linked to former Nairobi Governor Mike Sonko, ruling that there was effectively "nothing to stay" following an earlier High Court decision.

In a decisive judgment, the appellate court rejected ARA's application for a stay of execution, noting that the High Court ruling delivered on October 1, 2025 had merely dismissed the agency's case against Sonko without issuing any enforceable orders.

The judges emphasized a key legal principle under Rule 5(2)(b) of the Court of Appeal Rules: a stay of execution cannot be granted against a negative order--that is, a decision that does not compel any party to act or refrain from acting.

"A dismissal of a suit does not amount to a decree capable of execution, except as to costs," the court held, underscoring that there was no legal basis to halt the High Court's decision.

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The ruling deals a significant blow to the ARA, which had sought to preserve funds allegedly linked to Sonko pending the hearing and determination of an intended appeal.

The court further questioned the agency's reliance on Section 97 of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA). Judges noted that if the provision automatically preserved the assets in question, then filing an application for stay would have been unnecessary.

Consequently, the court found the Notice of Motion dated January 22, 2026 to be without merit and dismissed it with costs, handing Sonko a legal victory in the ongoing battle over his assets.

The decision reinforces established jurisprudence in Kenyan appellate law, clarifying that courts cannot issue stay orders where no enforceable directive exists. It also raises questions about the strategy employed by asset recovery authorities in pursuing high-profile cases.

For Sonko, the ruling offers temporary relief, with the court making it clear that the dismissal of the initial suit effectively left nothing in place to justify freezing his funds.

Read the original article on Capital FM.

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