High Court Rejects Government Bid to Seize Somali Businessman’s Assets

It is a big win for Somali businessman Gibriel Cusman Moxamed after the High Court sitting in Nairobi declined the government’s request to forfeit his assets worth over Sh8.5 million on claims they were acquired through proceeds of crime.

The court ruled against the Asset Recovery Agency (ARA), which had sought to seize Cusman’s cash and property alleging they were linked to terrorism and crime proceeds.

However, the court found that ARA failed to prove its case to the required legal threshold.

In a judgment delivered by Justice Benjamin Musyoki at the Milimani Anti-Corruption and Economic Crimes Division, the court noted that ARA had not provided sufficient evidence to justify the forfeiture of Unit Number 1 Green Peaks which is situated on Land Reference Number 1870/183 along Eldama Ravine Road and over Sh8.5 million held in I&M Bank accounts.

These properties are registered under Gibriel Cusman Moxamed.

ARA had argued that the assets were owned by a listed terrorist, Abdi Nasir Ali Mahamud. It sought forfeiture under Sections 81, 90, and 92 of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA).

The agency alleged that Ali was affiliated with a terrorist group and that the properties were proceeds of crime.

Justice Musyoki, however, said Cusman had provided a credible account of his professional background and financial dealings.

“He has held and served in high offices of his country and is indeed a person who can be said to have drawn international attention due to his rank and standing in the society yet nothing untoward has been traced against him,” said the judge.

Cusman produced his late mother’s will and explained that he inherited several properties from her, including land referenced as Tix/SCD/Sa/069/2010 commonly known as Sudan House which he later sold to Ali.

According to court documents, Cusman sold Sudan House on November 22, 2023, through the Osman Law Office for Public Notary and Legal Services.

The transaction, amounting to Ksh 284,598,600, was between him and Dahir Mohamoud Mohamed, who represented Ali in the deal.

The sale was confirmed to have been conducted through legal and verified procedures.

“In my view, forfeiting the proceeds from the sale would be taking his legitimate inheritance from him, yet it has not been traced to any criminal activity. The applicant should have done more in terms of investigations for this court to be justified in taking such a drastic measure against him,” the judge stated.

Justice Musyoki further noted that Cusman had plans to settle in Kenya with his family and had explained the series of transactions made toward purchasing the Green Peaks unit.

On March 15, 2023, he paid Ksh 66 million to Siana Properties Limited for the property.

Cusman emphasized that the mention of Ali in the transaction did not imply any personal interaction.

He denied having any physical or phone communication with Ali.

He added that the purchase price was deposited into his account in Mogadishu by Dahir’s family on November 22, 2023, and denied ever receiving money from Ali or making any suspicious transfers only transactions to his account.

Siana Properties Limited, which joined the case as an interested party, confirmed through its director that it had entered into a Ksh 110.5 million agreement with Cusman for the Somalia property.

Of this, Ksh 66 million was paid, leaving a balance of Ksh 33.25 million.

The company pleaded with the court not to issue a forfeiture order, citing potential financial loss.

The case arose from a transaction in which Sh72,449,440 was transferred to Jibca Services Limited (JSL) at I & M Bank, Riverside branch. ARA alleged this amount paid by Dahir Mahamoud was on behalf of Ali and, therefore, constituted terrorist financing.

The funds were partly used to purchase the Green Peaks property.

JSL was incorporated in February 2024, with Cusman as one of the two shareholders and the sole authorized signatory.

ARA’s application was supported by two affidavits sworn by investigator Bernard Gitonga, dated August 16, 2024, and January 24, 2025.

The agency alleged involvement of Cusman in terrorism financing, money laundering, and acquiring assets for terrorist use.

It cited that Ali is listed on the OFAC-Treasury Sanctions Network and Kenya’s security watch list.

However, Justice Musyoki pointed out that ARA had failed to demonstrate Ali’s direct involvement in the transaction or his connection to the said funds.

“ARA should have at least demonstrated to the court the character, presence, and existence and reasons for it to believe that the said Ali was a member of or is associated with the said group which the Kenya government has placed him in its watch list,” he said.

He added, “Cusman has given a credible chronology and explanation of how he bought the property in Kenya and how the funds found their way to his account, which was not a hidden transaction.”

“In my view, from the analysis of evidence produced, I hold that the applicant has failed to prove its case to the required standards, and the same is hereby dismissed with costs to the respondents,” concluded Justice Musyoki.