EACC to Auction Sh505 Million in Properties Linked to Obado and Allies : A Deep Dive
Nairobi, Kenya – September 24, 2025 — In a bold move aimed at reclaiming allegedly looted public resources, the Ethics and Anti-Corruption Commission (EACC) has announced plans to auction properties valued at KES 505 million tied to former Migori Governor Zachary Okoth Obado and his network of associates. The auctions will take place between October 9 and October 17, 2025, in Nairobi, Kisumu and Migori counties.
This action is part of a broader alternative dispute resolution (ADR) and plea-bargain settlement in which some suspects agreed to surrender assets rather than engage in protracted litigation.
Background: The Obado Corruption Case
The Charges and Allegations
Okoth Obado and 13 others, including his four children, face charges at the Milimani Anti-Corruption Court for economic crimes, money laundering, and unlawful acquisition of public property.
According to the EACC, investigations uncovered suspicious payments from Migori County funds, totaling about KES 1.98 billion, paid to various contractors and suppliers. While much of these payments were purportedly verified, KES 235 million was left unexplained and flagged as likely proceeds of corruption.
Documents presented in court suggest that some of the illicit funds were used to pay tuition for Obado’s children at foreign universities. Other proceeds were allegedly used to acquire high-end real estate under third-party names.
In court hearings, the EACC presented bank records and transactional trails to show inside transfers from county accounts to entities controlled by the accused.
Plea Bargain & Asset Surrender
Rather than litigate on every front, some suspects opted for ADR and plea bargaining. In those arrangements, they voluntarily forfeited properties to the State. This tactic allows faster recovery of assets, but critics note it may reduce deterrence if suspects feel terms will be favorable.
In total, the EACC and its partners have earmarked 10 prime properties across Nairobi, Kisumu and Migori for auction, all linked to Jared Kwaga, Joram Otieno, Caroline Obwa, and Yuda Otago Ojuki.
The Assets Up for Auction
According to public notices and media reporting, here’s a sample of the properties expected to go under the hammer:
Nairobi / Kiambu area
- A three-bedroom apartment in Riara, part of a multi-block development.
- A two-bedroom ground-floor apartment in Greenspan Estate (Block U).
- A townhouse in Loresho Ridge, off Waiyaki Way, with supporting infrastructure and domestic quarters.
Kisumu
- A four-storey block of flats in Lolwe Estate, with multiple units, parking, and essential utilities.
Migori / Suna East / Rongo areas
- A plot of 0.12 hectares on Migori–Kisii Road, with masonry fencing and commercial buildings.
- A 0.09-hectare parcel developed with two apartment blocks (10 units each) near Kadika Girls Secondary.
- A bungalow plus multi-unit semi-detached houses in the Rongo area, near El-Bethel Academy.
- Another parcel off the Migori-Isebania Highway with room for expansion.
The EACC has engaged Galaxy Auctioneers, Keyslan Auctioneers, and Astorion Auctioneers to run the process.
Deposit & Payment Terms:
- A refundable deposit of KES 500,000 is required to register as a bidder.
- On auction day, successful bidders must pay 10% of the purchase price, with the remaining 90% due within 60 days.
Legal Framework & Risks
The EACC is acting under powers granted by Kenyan law to seize and liquidate assets deemed proceeds of corruption. The Anti-Corruption & Economic Crimes Act allows for:
- Forfeiture of gains made through corrupt acts
- Public auction of seized assets
- Fines up to twice the value of the ill-gotten gains
- Prison sentences up to 10 years per offense
- A ban of up to 10 years from holding or seeking public office for convicted persons
That said, critics point out that plea bargains may reduce deterrence. If the surrender terms are too lenient or repayment schedules long, suspects might treat the process as a calculable cost of doing business.
Moreover, valuation transparency and reserve pricing will be key. If the properties go for less than fair market value, public trust could be damaged.
Legal challenges could also arise:
- Appeals by the defendants claiming procedural violations
- Injunctions that delay or block the auction
- Disputes about proper title, survey, and encumbrances on the properties
Public Reaction & Implications
The announcement has triggered a mix of skepticism and cautious optimism across social media, civil society and governance experts:
- Some commentators question why Obado and associates are surrendering only a fraction of the alleged misappropriation and whether the process will recover enough to deter future abuse.
- Others demand that recovered funds be used transparently in public services (education, health, infrastructure).
- Analysts see this as a test case: if the process is fair, it could strengthen confidence in Kenya’s asset recovery regime; if flawed, it may reinforce cynicism about institutional capture.
Dr. Robert Wesonga, governance analyst at University of Nairobi, is reported to have cautioned that such settlements must impose real pain on perpetrators, not just symbolic recovery.
What Remains Unclear
- The reserve prices set for each property and how they were determined
- The valuation methodology and whether independent appraisals were used
- Whether the public can inspect properties before bidding (viewings, condition reports)
- The timeline for allocation of the recovered funds and where in budget they will be applied
- Whether further asset investigations will follow or if all claims are settled with this auction
- Whether Obado or any of the accused will challenge or attempt to reverse the forfeitures
Timeline (Key Milestones)
| Period / Date | Event |
|---|---|
| 2013–2017 | Period during which alleged misappropriation occurred |
| 2024 | Court proceedings and EACC investigation deepen, civil suits filed |
| Sept 22, 2025 | Public announcement of auction of KES 505 million in assets |
| Oct 9, 2025 | First auctions in Nairobi commence |
| Oct 16, 2025 | Auctions in Kisumu & Migori begin |
| Oct 17, 2025 | Auction window expected to conclude |
What to Watch & Why It Matters
- Transparency and oversight: Will bidders get full property documents, title verification and independent valuations?
- Fairness in bidding: No favoritism, no insider access, and equal conditions for all participants
- Use of proceeds: Will recovered funds meaningfully support public services or vanish into general budget lines?
- Deterrent effect: Will this set a precedent so future actors understand that misappropriation carries real cost?
- Legal resistance: Will Obado or his allies file appeals or motions to stall or nullify the process?
- Replication in other cases: A successful auction could embolden further recovery efforts for other high-profile corruption cases.
