Unpaid fines, penalties pile up as City Hall ignores court orders
One of the most notable cases cited by Gathungu is from 1991, where City Hall was ordered by the High Court to pay Sh299,375,214 to a party. Despite the court ruling, this amount continues to grow due to unpaid interest.
Nairobi County Government is facing financial and legal challenges due to its failure to comply with several court orders directing it to pay millions of shillings in fines and penalties dating back to the 1990s.
The latest revelations come from the Auditor General’s 2023/24 financial year report, which highlights the ongoing legal troubles and their escalating financial consequences.
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According to Auditor General Nancy Gathungu, City Hall has consistently ignored court rulings, resulting in substantial fines and interest accumulating over time.
"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 1990s and have since accumulated a lot of interest," Gathungu said in her report.
One of the most notable cases cited by Gathungu is from 1991, where City Hall was ordered by the High Court to pay Sh299,375,214 to a party. Despite the court ruling, this amount continues to grow due to unpaid interest.
The Auditor General pointed out that even though court orders were issued in 2015 and reaffirmed in 2021, City Hall has failed to settle its dues.
"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,” Gathungu said.
“For instance, in the case that dates back to 1991, a decree court order was issued on March 3, 2015 and November 25, 2021 reaffirming this obligation, yet the County Management has still not complied," she added.
This financial burden comes at a time when Nairobi County has employed 60 lawyers as part of an effort to cut down on its multi-billion-shilling legal fees.
Governor Johnson Sakaja recently revealed that the county had been unable to hire external legal firms due to the massive debts owed to some of them.
"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," he explained.
Sakaja noted the critical role of the new legal team, noting that they would play a vital part in transforming the county and ensuring that legal frameworks are properly followed under his administration.
"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,” he added.
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