A Kisumu court has acquitted all 12 accused persons in the long-running anti-corruption case involving the Lake Basin Development Authority (LBDA) retail mall project, bringing an end to a high-profile legal battle that has gripped the nation since 2019.
Principal Magistrate Celesa Okore delivered the landmark ruling on June 3, 2025, in Anti-Corruption Case No. 26 of 2019, citing insufficient evidence and fundamental contradictions in the prosecution’s case. The court concluded that the prosecution had failed to establish a prima facie case against the accused, thus eliminating the need for them to mount a defense.
The case, which had languished in courtrooms for over six years, saw only 10 of the intended 46 prosecution witnesses take the stand. It took a dramatic turn last month when the Office of the Director of Public Prosecutions (ODPP) filed a motion to withdraw all charges, under Section 87(a) of the Criminal Procedure Code.
In the ODPP’s application, dated May 6, 2025, Principal Prosecution Counsel Kennedy Panyako cited a reassessment of the evidence—most notably, testimony by Dr. Evans Atera, the former LBDA Managing Director. Dr. Atera testified that payments for the project had been executed in accordance with a binding legal opinion issued by the Attorney General on January 31, 2017. That opinion affirmed the validity of the agreements in question and stated they could not be terminated until full contractual and accrued interest payments were made.
While the defense did not oppose the withdrawal, they strongly contested the reliance on Section 87(a), which permits re-arrest and future prosecution based on the same facts. They argued it exposed the accused to ongoing jeopardy and urged the court instead to apply Section 204, which would result in a permanent acquittal. However, Magistrate Okore ruled that Section 204 was inapplicable, as it requires a formal examination of the complainant on oath—a step that had not been taken.
Instead, the court dismissed the ODPP’s application under Section 87(a) and proceeded to acquit all the accused under Section 210, which provides for acquittal where the prosecution fails to make a case sufficient to require a defense. The court emphasized that continuing the trial would violate the principles of fair justice, given the lack of credible evidence and the state’s apparent unwillingness to proceed.
In her ruling, Magistrate Okore highlighted that the prosecution’s evidence, particularly that of Prosecution Witness 9 (PW9), directly contradicted the charges. She noted that the state had neither indicated an intention to call further witnesses nor demonstrated any viable path forward for the case.
As a result, the court ordered:
-
The dismissal of all charges against the accused,
-
The immediate release of confiscated items held by the Ethics and Anti-Corruption Commission (EACC) or other agencies,
-
The return of all passports and travel documents deposited in court,
-
The discharge of all sureties, and
-
That each party bears its own legal costs.
All parties were granted a 14-day window to file an appeal.
The conclusion of the LBDA case marks a critical moment in Kenya’s anti-corruption efforts. While it brings relief to the 12 former suspects, it raises broader concerns about the effectiveness of investigations and prosecutorial readiness in complex corruption cases involving public funds.
As the nation continues to grapple with the fight against economic crimes, legal observers and governance watchdogs are expected to closely analyze the ruling’s implications for future anti-corruption prosecutions.
About The Author
