KCB ordered to release Sh76million to AA Bayusuf & Sons held for 15 years
It is yet unclear if the Paul Russo’s led Kenya Commercial Bank (KCB) has honoured the court directive to release Sh76.8 million belonging to Northern Water Works Development Agency to transport firm AA Bayusuf & Sons as ordered in a November 18, 2025 ruling delivered by High Court judge, Justice J.W.W Mongare.
The money has been held from 2009 following long-running payment dispute dating back more than fifteen years owed to the contractor popularly known during the late President Daniel arap Moi’s era.
AA Bayusuf & Sons are said to have completed the works in 2009.
The money, amounting to Sh76,822,199.82, has been sitting in an account at KCB’s Garissa Branch.
When contacted by The Informer Media Group, Russo did not respond whether or not if the bank has effected the court decree.
Also, the bank did not disclose the amount of interests that has accrued since 2007 and whether it has been released to the government agency following the court ruling or not.
It is tied to the Garissa Sewerage Project, a government-funded infrastructure upgrade undertaken in 2009.
The ruling brings to an end a prolonged battle involving the Northern Water Works Development Agency, which had failed to settle the debt despite multiple judgments confirming the contractor’s entitlement to payment.
Although the contractor completed its work and secured court judgments in its favour, the funds remained locked in the agency’s account as the case dragged through fresh layers of litigation.
The breakthrough came after AA Bayusuf & Sons moved to court seeking a garnishee order to compel the bank to release the money.
The company argued that Section 94 of the Civil Procedure Act does not prohibit a party from seeking leave to execute a judgment prior to taxation within the same application. They maintained that the law only requires permission when execution is pursued before costs are assessed, and they had complied with the proper process.
The High Court agreed, dismissing the objections raised by the Northern Water Works Development Agency, which had argued that the application was premature and irregular because costs had not yet been taxed.
The agency insisted the contractor should have filed a separate request before seeking execution.
The judge, however, found no merit in the agency’s objections.
The court noted that the debt had already been admitted and adopted in a June 2025 ruling, and that KCB had confirmed it held sufficient funds in the agency’s account to satisfy the decretal amount.
No competing claims had been lodged over the money, and the agency had also missed its chance to file proper grounds of opposition.
In a firm decision, the court issued a Garnishee Order Absolute directing KCB Bank to immediately release the Sh76.8 million to AA Bayusuf & Sons.
The judge emphasised that the purpose of garnishee proceedings is to allow a decree holder to access money owed by a judgment debtor, provided the bank actually holds those funds.
