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October 11, 2024
A Legal Victory for Waluke and Wakh'ungu
Back to News and Updates
In a major legal development, the Court of Appeal has overturned the 67-year jail sentences and ksh 2 billion fine handed to Sirisia MP John Waluke and his business associate Grace Wakh'ungu. The two had been convicted concerning a Ksh 313 million maize scandal involving their firm, Erad Supplies and General Contractors. The Court’s decision has relieved the pair, who had spent three months in jail before their release on bail. This case, one of Kenya’s high-profile corruption trials, has now taken a dramatic turn with the ruling in their favour.
Back to News and UpdatesThe Maize Scandal - A Look Back
The case against John Koyi Waluke and Grace Sarapay Wakh'ungu traces back to an alleged botched maize deal from 2004, involving their firm, Erad Supplies, and the National Cereals and Produce Board (NCPB).
Erad Supplies received Ksh 313 million as compensation for a failed agreement to supply 40,000 metric tonnes of maize. While prosecutors claimed the payment was fraudulent, the defense argued it arose from a lawful arbitration process, not a procurement scheme - a distinction that became central to the appeal.
Defense Strategies - Arbitration, Not Fraud
Led by veteran lawyer Paul Muite, the defense maintained that the disputed payment followed a valid arbitration award after NCPB allegedly failed to honor contractual obligations. Muite emphasized that the arbitration ruling was never overturned and that the amount paid was only a fraction of the original award.
The defense urged the court to interpret the matter as a commercial dispute rather than a criminal offense, challenging the foundation of the fraud charges.
Cracks in the Prosecution’s Case
A major turning point in the appeal was the claim that the prosecution’s case contained material inconsistencies.
The defense argued that the evidence failed to conclusively prove fraud and instead pointed to a civil commercial dispute. These weaknesses significantly undermined the prosecution’s position and strengthened the argument for dropping the charges.
Judicial Doubts and Release
The Court of Appeal’s decision followed Justice Abida Ali Aroni’s refusal to sign the original judgment, citing concerns that the evidence did not sufficiently support claims of fraud. This judicial hesitation proved pivotal in quashing the jail terms and fines.
Following the ruling, Wakh'ungu and Waluke were released on cash bail of Ksh 20 million and Ksh 10 million, respectively, after having already served three months in prison.
Implications for Future Corruption Cases
The overturning of the sentences has reignited debate on how corruption cases are prosecuted in Kenya.
While the ruling granted freedom to the accused, it also highlighted the complexities of white-collar crime prosecution. The case underscores the importance of due process, clear evidence, and legal precision in securing sustainable convictions within the justice system.
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