Treasury tracing Libyan assets

A decision is yet to be made on whether to freeze Libyan assets in Kenya.

The Treasury is tracing investments linked to besieged Libyan leader Muammar Gaddafi and his cronies, but there is no word on how to deal with the assets once they are identified.

On Sunday, the Foreign Affairs ministry said it was consulting the Central Bank and the Treasury on the way forward.

“This was a UN resolution, so it is expected that the entire UN membership will comply,” said Mr Michael Oyugi, the acting political and diplomatic secretary.

The United Nations Security Council imposed sanctions on the Libyan regime last month over violent attacks on civilians.

But it has been difficult for many African countries to tell whether the vast investments by Libyan Arab Africa Investment Company (Laico) in tourism, banking and telecommunications were held in trust for Libyans or belonged to the clique in power.

Uganda and South Africa have indicated that they will freeze the assets of Mr Gaddafi and his associates. Last month, Uganda appointed new managers to run a hotel and bank linked to Tripoli.

However, Yoweri Museveni’s government was categorical that the move was meant to protect shareholders by preventing a run on the bank, and that the Libyan managers would take over after the crisis in their country was resolved.

The flagship Libyan investments in Kenya are in the petroleum and hospitality industries: Libya Oil Kenya Ltd and Laico Regency Hotel in Nairobi.

Oil Libya runs fuel outlets in many towns after it bought out Mobil in 2007, while Laico Regency, formerly Grand Regency, is one of the city’s top hotels.

Both firms are owned by Laico, whose assets the US Office of Foreign Assets Control (Ofac) has ordered frozen.

Ofac administers and enforces economic and trade sanctions against foreign states, organisations and individuals.

But on Sunday, the management of Laico Regency denied that the hotel was targeted by the sanctions.

“We have no comment on that matter. We do not have any such information and the hotel is running. You can come and see for yourself,” the management said in a statement.