Ex-Treasury Chief Seeks Sh3 BILLION Compensation for Loss of Reputation, Career, and Family Distress

Former Cabinet Secretary for the National Treasury and Planning, Henry Rotich, has filed a lawsuit against the Kenyan government, demanding close to Sh3 billion in compensation for what he claims was malicious prosecution.

The legal action follows his controversial prosecution in 2019 over the Kimwarer and Arror dams scandal, which he argues ruined his career, damaged his health, and harmed his family.

Rotich, who was charged in 2019 with various criminal offenses, claims the government’s decision to pursue legal action against him was baseless and motivated by malice. He has named the Attorney General (AG), the Director of Public Prosecutions (DPP), and the Directorate of Criminal Investigations (DCI) as defendants in the case.

Rotich, now engaged in farming and private business, argues that the charges were fabricated and initiated without evidence, as evidenced by his acquittal on December 4, 2023.

Allegations of Malicious Prosecution

Rotich accuses the DPP, the DCI, and the Attorney General (AG) of deliberately ignoring evidence exonerating him, including a report from the Auditor General that cleared him of any wrongdoing in the Kimwarer and Arror dams project.

Instead, he alleges that the DCI fabricated evidence to justify the charges and coerced former Principal Secretary Kamau Thugge, now the Central Bank Governor, into signing false statements in exchange for having their own charges dropped.

Rotich further contends that he was used as a scapegoat, with higher-ranking officials involved in the scandal avoiding prosecution altogether. He singles out the then-Cabinet Secretary of the line ministry, arguing that they should have been held accountable instead of him.

Emotional and Financial Impact

The ordeal of being wrongfully prosecuted has had profound effects on Rotich’s mental and emotional well-being. He describes living in constant fear of imprisonment and the destruction of his reputation, suffering from sleepless nights and frequent anxiety attacks. Even after his acquittal, he continues to grapple with the psychological scars left by the experience.

“The ordeal of being wrongfully prosecuted has profoundly affected my mental and emotional well-being. I lived in constant fear of imprisonment and the destruction of my reputation. Sleepless nights and frequent anxiety attacks became part of my daily life, and I am still working to recover from their effects,” he said.

The charges also curtailed his political ambitions, as friends and acquaintances distanced themselves from him, leaving him feeling ostracized and humiliated. His eldest son’s academic performance suffered due to peer pressure, prompting Rotich to transfer his children to a new school to shield them from embarrassment.

In addition to the personal toll, Rotich faced significant financial hardships. While serving as CS, he was placed on half-pay, making it difficult to support his family and cover educational expenses. He incurred substantial legal fees, paying Ksh50 million to his lawyer for representation in criminal proceedings, appeals, and judicial reviews.

Furthermore, his long-standing relationship with Standard Chartered Bank (Kenya), established in 1993, was terminated, forcing him to move his accounts to other institutions like Kenya Commercial Bank and Equity Bank.

Additionally, Rotich claims that his parents were subjected to a violent robbery at their home in Eldoret, further compounding the distress caused by the scandal. He says the attackers demanded a briefcase that allegedly contained money, further exacerbating the strain on his family.

Damages Sought

Rotich is seeking a total of Sh2.836 billion in damages for the harm he claims to have suffered. His compensation request includes:

  • Sh850 million for mental anguish, humiliation, loss of dignity, and harassment endured by his family.
  • Sh106 million for lost earnings, legal fees, and business opportunities, including consultancy engagements and the termination of his banking relationship with Standard Chartered Bank.
  • Sh30 million for health deterioration caused by the stress of the prosecution.
  • Sh950 million for the damage to his career, including missed job opportunities and the toll the charges took on his reputation and prospects as an economist.
  • Sh900 million in exemplary or punitive damages to deter similar actions in the future.

Rotich also claims that he was subjected to a flawed and incomplete legal process, where witnesses were not properly questioned, and the prosecution failed to present compelling evidence. “Witnesses were routinely sworn in without being questioned, which demonstrated that the case was politically motivated and driven by malice,” Rotich stated.

Legal and Professional Consequences

Before his appointment as Treasury CS, Rotich had an extensive career as an economist, working for the Ministry of Finance, the International Monetary Fund (IMF) in Nairobi, and the Central Bank of Kenya. He contends that the false charges irreparably harmed his professional reputation, including causing the loss of significant business opportunities.

“I had spent over 25 years building my career as an economist, and the charges not only destroyed that but also ended my chances of international roles,” he said.

In his lawsuit, Rotich claims that the prosecution was not only unjust but also maliciously executed with the intent to ruin his career and personal life. He believes that the actions of the government were marked by gross negligence, ill-will, and malicious intent, as the charges were based on flimsy and fabricated evidence.