New Kenya-Swiss agency MoU to boost looted assets’ recovery

Swiss ambassador to Kenya Ralf Heckner. PHOTO | JOSEPH KANYI | NMG  

In Summary

• The MOU will facilitate mutual assistance between the two countries through the provision of technical help that is aimed at confiscating illegally acquired assets and repatriating them.
• The move is a boost to the war on corruption, especially where those who loot the assets hide them abroad.
• Kenya now plans to develop a treaty on extradition to facilitate the transfer of the criminals to face justice as well as recover what has been looted.

By EDWIN OKOTH
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Kenya has signed a memorandum of understanding (MoU) with a Swiss government agency to boost recovery of looted wealth stashed overseas.

Switzerland is among the top havens in the world preferred for hiding illicit wealth due to its secretive banking practices.

Attorney-General Githu Muigai said the agreement with the Swiss Federal Council would facilitate mutual assistance between the two countries through the provision of technical help that is aimed at confiscating illegally acquired assets and repatriating them.

The AG also said the move is a boost to the war on corruption, especially where those who loot the assets hide them abroad.

“The signing of the memorandum of understanding between the Swiss Federal Council and the Republic of Kenya on mutual legal assistance in criminal matters goes a long way in reassuring Kenyans that the days of thieves are numbered. You can run but you no longer have a hiding place because all our partners are supporting us in this fight,” Prof Muigai said at the ceremony attended by Swiss ambassador to Kenya Ralf Heckner.

Key areas of cooperation in the agreement include assets recovery in various parts of the world, as well as the repatriation of criminals and their proceeds.

Kenya now plans to develop a treaty on extradition to facilitate the transfer of the criminals to face justice as well as recover what has been looted.

The Mutual Legal Assistance Act 2011 came into effect on December 2, 2011 and provides for legal aid to be given and received by the Government of Kenya from foreign countries and partners in relation to investigations, prosecutions and judicial proceedings on criminal matters.

Kenya is also racing to recover billions of shillings stashed in overseas accounts by its citizens over the years. One of the latest is an amnesty given to tax cheats holding cash and property abroad.

Treasury Cabinet Secretary Henry Rotich extended the pardon by six months during his April Budget speech, pushing the deadline to June 2018.

The amnesty covers taxes, penalties or interest in respect of any year of income ending on or before December 31, 2016 and allows those with assets held abroad to repatriate them with no questions on their origins or past records.

Once those with wealth hidden abroad have declared them, they are issued with a certificate to declare their tax evasion sins forgiven.

Stakeholders have voiced concerns that the move meant to put more high net worth individuals into the tax system could be prone to abuse as many will use it to launder their wealth — some thought to have been acquired illegally — by returning it to Kenya.

Transparency International Executive Director Samuel Kimeu said the assumption that all the wealth stashed abroad is clean may create loopholes for criminals and corrupt leaders with wealth abroad to bring it back to Kenya.