Daniel arap Moi

Daniel arap Moi served as the second President of Kenya, from 1978 to 2002. During his rule, Mr. Moi managed to simultaneously enrich himself while "turning one of Africa's most promising economies into a state of desperation." 1

Mr. Moi’s downfall began with his implication in the Goldenberg Scandal, a conspiracy by government ministers to abuse the Kenyan Export Compensation Act. This act gave 20% compensation from the Central Bank of Kenya (CBK) for exporters who brought foreign currency into the country.

In 2000, Goldenberg International Limited was co-founded by the Director of Kenya’s Security Services James Kanyoto. After obtaining a five-year monopoly and 35% compensation agreement, Goldenberg began faking exports of gold and diamond jewelry to several Swiss and Middle Eastern companies and claiming compensation from the CBK. The scheme, which lasted for three years between 2000-2003, netted at least US $600 million and possibly up to $1 billion. In relative terms, it is estimated that the Goldenberg fraud cost Kenya up to 10% of its GDP.

Additionally, Mr. Moi was implicated with bribery in a case heard by the International Center for Settlement of Investment Disputes (ICSID). This case involved a businessman, Ali Nasif, of World Duty Free company, who testified in his defense to being required to bribe Mr. Moi with US $2 million dollars to gain approval for setting up a store in Nairobi’s airport. 

Constitutionally barred from seeking another term, Mr. Moi decided not to modify the constitution, but chose Mr. Kenyatta as his successor. However, both Mr. Kenyatta and the Kenyan National African Union party (KANU) lost the elections held in 2002 amid continued concern over corruption. The new President Mwai Kibaki opened inquiries into the Goldenberg Affair and appointed the founder of Transparency International Kenya, John Githongo, as head of Governance and Ethics. Also, President Kibaki commissioned Kroll Consulting to trace the assets of senior political figures tied to the conspiracy, including Moi’s sons Gideon and Philip. However, the subsequent Anglo-Leasing scandal drained government enthusiasm for asset recovery, and the final Kroll report was never publicly released. However, a verifiable leaked version of the report traced billions of dollars back to individuals and family associated with Mr. Moi.

No asset recovery proceedings have been made against Mr. Moi to date. Despite stepping down from power, Mr. Moi continues to play a key role in Kenyan political life and was an important political backer and financier in the President Kibaki’s re-election in 2007.