The National Treasury has called for the establishment of a Criminal Assets Recovery Fund into which graft proceeds will be banked.
Treasury Cabinet Secretary Ukur Yatani will invest the proceeds of crime in government securities, according to the regulations establishing the fund.
All money derived from confiscation and forfeiture of assets under the Proceeds of Crime and Anti-Money Laundering Act will be deposited into the kitty.
The Treasury says this will ensure the money is spent for the public and common good.
The Fund will also receive, manage and transfer all property seized from graft suspects as spelt out in the Act.
Money derived from seized assets stashed abroad by corruption suspects will also be deposited in the Fund.
“The Fund will receive money or property recovered under the Anti- Corruption and Economic Crimes Act, 2003,” the regulations state.
Part of the proceeds will be used “to build capacities for law enforcement and criminal justice in Kenya”.
There have been concerns about the manner in which assets seized by the state have been left to waste away due to the lack of a legal regime guiding the use of the assets.
The assets include land, homes, cars, bank accounts and other valuables.
Millions of shillings remain untouched in banks. Assets such as vehicles are losing value by the day in holding areas as they cannot be auctioned without a proper law in place.
This is the situation Yatani seeks to set right once Parliament approves the legislation.
It is suggested the Criminal Assets Recovery Fund Committee be chaired by the Attorney General.
The other members will be the Treasury Principal Secretary, NIS chief, Central Bank of Kenya governor, Financial Reporting Centre director general, Ethics and Anti-Corruption Commission chief executive, KRA commissioner general, Director of Public Prosecutions, Director of Criminal Investigations and the Fund administrator.
“In the absence of the chairperson in any meeting of the committee, the members present shall elect one of their own to chair the meeting,” the regulations say.
“Members may attend in person or through a designated representative. The committee may, from time to time, co-opt other members as it may deem necessary.”
The team is expected to develop relevant guidelines – and review them as the need arises – to guide the operations and implementation of the Fund.
It is also to provide the manner for the utilisation of properties and monies standing to the credit of the Fund.
The team will oversee the management and administration of the Fund, including recoveries from properties confiscated or forfeited to the Committee under the Act.
Further, it will to approve policy on the management of assets, equipment and all properties of the Fund.
Assets recovery has become a lethal tool in President Uhuru Kenyatta’s rejuvenated efforts to wipe out corruption.
Multi-agency teams dealing with the proceeds of crime say they have netted close to Sh20 billion in graft proceeds.
The EACC is pursuing other proceeds worth Sh8.7 billion.