Gathungu flags City hall over million of fines, penalties dating to 1990’s

City Hall is yet to comply with court orders directing them to pay millions of shillings accrued as penalties and fines dating back to the 1990s.

This was revealed by the Auditor General, Nancy Gathungu, in her 2023/24 financial year report, in which she accused the devolved unit of failing to meet its obligations despite several court orders.

“The County management is in breach of the law for failing to comply with several court orders requesting them to pay substantial fines and penalties dating back in the 1990’s and have since accumulated a lot of interest,” Gathungu said in her report.

She gave an example of the ruling in High Court Number 493 of 1991 where City hall was ordered to pay Ksh 299,375,214 to a party, a sum that continues to accrue interest.

The Auditor General indicated that despite court orders issued in 2015 and 2021, City Hall is yet to pay the pending bill.

“Despite these outcomes, Management has consistently failed to comply with court orders, leading to the accumulation of interest on unpaid fines exposing the County Executive to additional financial strain and legal consequences. For instance, in the case that dates back to 1991, a decree court order was issued on 3 March 2015 and 25 November 2021 reaffirming this obligation, the County Management has still not complied,” Gathungu stated.

The audit report comes at a time the county has employed 60 lawyers in a move to cut down on the multibillion spending on legal services.

Nairobi Governor Johnson Sakaja recently revealed that the county cannot engage external lawyers because of the billions of shillings his government owes to some firms.

“We have had cases where a single legal firm bills Nairobi County over Sh1 billion. As a government, we cannot continue down this path. Hiring our lawyers will not only save costs but also ensure that we have greater control over the quality of our legal work,” Sakaja said.

He added that the new team of legal experts would play a major role in transforming the county and ensuring proper implementation of legal frameworks in line with his government.

“You are a crucial part of this administration, and we have high expectations for you to deliver on our manifesto. Even if you face resistance, remain steadfast, and let your conscience guide you,” Sakaja added.