The Court of Appeal has set aside High Court a ruling that ordered Deputy President Rigathi Gachagua to forfeit Sh200 million to the government.
In 2020, the High Court froze Sh200 million belonging to Mr Gachagua pending a petition by a State agency for the money to be forfeited to the government.
Last year High Court Judge Esther Maina ruled that Mr Gachagua had failed to explain how he acquired the wealth from government agencies.
But in the appeals court, Assets Recovery Agency (ARA) supported Gahagua's petition and stated that it has established that the funds are not proceeds of crime as earlier alleged.
ARA also said that it never investigated allegations by the Directorate of Criminal Investigations (DCI) that Mr Gachagua obtained the money fraudulently from various State institutions and Bungoma County government.
When the DCI raised the claim ARA moved and seized the wealth without conducting its own verification, Court of Appeal heard.
Justices Daniel Musinga, Imana Laibuta and Ngenye Macharia have allowed a consent signed by lawyers of both sides.