Court of Appeal upholds seizure of Sh256 million, finding betting firm’s transactions bore hallmarks of criminal activity
Kenya’s betting sector has suffered another major blow after the Court of Appeal definitively ruled that MozzartBet Kenya Limited cannot recover Sh256 million seized by the state, with judges finding compelling evidence linking the company’s directors to money laundering operations.
The appellate court’s judgment, delivered in May 2025, represents the final chapter in a lengthy legal battle that began when the Asset Recovery Agency (ARA) first froze the funds in 2020, alleging they constituted proceeds of crime channeled through a sophisticated shell company scheme.
Complex Web of Financial Deception
At the heart of the case lies MozzartBet’s relationship with Kimaco Connections Limited, a company owned by Peter Kiilu Makau and Consolata Mwende Kiilu that received over Ksh576 million from MozzartBet Kenya between February and June 2020, ostensibly for betting software solutions.
However, investigations revealed Kimaco’s true nature. The court found that Kimaco was a shell company lacking in financial capacity to undertake the alleged contract, while simultaneously filing nil tax returns with the Kenya Revenue Authority throughout the period it allegedly provided services worth hundreds of millions.
The money trail uncovered by investigators painted a picture of circular transactions designed to obscure the true destination of funds. After receiving payments from MozzartBet, Kimaco would transfer the money to Pescom Kenya, where Peter Makau served as the sole signatory. From there, funds flowed back to individuals connected to MozzartBet’s operations.
Directors in the Spotlight
The court found that MozzartBet’s directors were not innocent third parties, with evidence showing the foreign directors of the betting firm were directly implicated in the money laundering scheme. The case specifically involved company directors from Serbia, Zimbabwe, and Kenya who were allegedly the ultimate beneficiaries of the laundered funds.
The judges emphasized that even if MozzartBet had not been enjoined, the evidence clearly connected the company and its directors to illegitimate financial activity, making it impossible for the court to view the transactions as legitimate business dealings.
Legal Arguments Fail to Convince
MozzartBet’s legal team mounted a vigorous defense, arguing that the disputed funds originated from legitimate betting operations. They presented evidence showing the company had generated billions of shillings from bet sales and claimed that software contracts with Kimaco were genuine business transactions frustrated only by ARA’s intervention.
However, the court dismissed MozzartBet’s appeal, stating that the betting firm failed to satisfactorily explain the connections with an entity that was conducting its affairs in a questionable manner. The judges found the circular nature of the transactions and Kimaco’s lack of genuine business operations to be damning evidence of criminal intent.
This ruling represents one of the most significant victories in Kenya’s fight against money laundering in the betting sector. The courts have determined that the company and the directors were actively involved in active money laundering a criminal act in the country. Kenya must not be a safe hub for criminal elements and especially at a time when we’re struggling with the heavy burden of the cost of living.
The case demonstrates the effectiveness of Kenya’s asset recovery framework in pursuing complex financial crimes, even when they involve major corporations with substantial legal resources. It also signals that the country’s courts will not hesitate to pierce corporate veils when evidence suggests systematic criminal activity.
Financial and Reputational Consequences
For MozzartBet, the ruling represents far more than a significant financial loss. The gambling firm has splashed millions sponsoring tournaments, teams, and flashy events. But beneath the glitz and glamor lies a dark truth. A recent ruling by the Court of Appeal has declared Mozzartbet’s Ksh256 million as proceeds of crime, confirming that the company fueled its operations through questionable means.
The reputational damage from being definitively linked to money laundering operations could have lasting implications for the company’s ability to operate in Kenya’s competitive betting market. The ruling also raises serious questions about the oversight of foreign-owned betting companies and their compliance with Kenya’s financial regulations.
What Lies Ahead
With the Court of Appeal having upheld the forfeiture order, MozzartBet’s only remaining recourse would be to petition the Supreme Court. However, given the strength of evidence and the consistency of rulings across different judicial levels, prospects for success appear limited.
The foreign directors of the betting firm are also at risk of being deported after the court found that the bookmaker was involved in the money-laundering scheme, adding immigration consequences to their legal troubles.
The case serves as a clear warning to other operators in Kenya’s betting industry that sophisticated financial schemes will not escape scrutiny, regardless of the corporate structures used to disguise them. It also reinforces the message that Kenya is serious about preventing its financial system from being exploited for money laundering purposes.
As the Asset Recovery Agency continues to pursue similar cases across various sectors, this victory demonstrates that Kenya’s anti-corruption framework is capable of successfully challenging even well-resourced defendants when evidence of criminal activity is compelling.
The MozzartBet case will likely be remembered as a watershed moment in Kenya’s efforts to clean up its financial sector and ensure that legitimate businesses operate on a level playing field, free from unfair competition from those willing to circumvent the law.
There's no story that cannot be told. We cover the stories that others don't want to be told, we bring you all the news you need. If you have tips, exposes or any story you need to be told bluntly and all queries write to us [email protected] also find us on Telegram
