Nairobi MCAs launch probe into Sh10.7 billion "fraudulent" legal claims

Nairobi Members of County Assembly have launched a probe into what they describe as fraudulent legal claims amounting to Sh10.7 billion, paid or demanded by law firms under questionable circumstances.

The MCAs say the county has been exposed to massive losses through inflated legal fees, manufactured court cases and lack of documentation for millions already paid.

At the centre of the inquiry is a 2014 case where Nairobi County demanded Sh5.3 million in land rates from Yellow Horse Inn Limited, a private tenant.

However, during court proceedings, City Hall changed its position and claimed ownership of the same land. This shift, according to MCAs, signalled a manipulated case that allowed officials and law firms to benefit financially.

To defend its new stance, the county hired Momanyi and Associates Advocates, which issued a Sh80 million fee note, later reduced to Sh34 million. No contract or supporting documents have been provided to justify this cost.

In another case, the county was sued over alleged corruption in recruiting traffic marshals. It hired Gikunda Miriti and Company Advocates, which billed Sh100 million, later reduced to Sh67 million and paid in June 2023.

Another Sh30 million was paid to a third law firm without a case file, legal opinion, or contract, raising more concerns among MCAs.

Public Accounts Committee Chairperson and Ngara MCA Mwaura Chege questioned how the county could demand land rates then later claim the land belonged to it, calling it a failure in due diligence.

“That parcel in Ruaraka was earmarked for a fire station. Yet, a demand was issued, rates were paid, and the land was eventually sold. There's now a private fire station on public land, and the county is in court trying to reclaim it,” Baba Dogo MCA Geoffrey Majiwa said.

The Public Accounts Committee is now reviewing the actions of at least 11 law firms whose total demands stand at Sh10.7 billion.

County Attorney Christine Ireri, who has been in office for less than a year, said many legal fees were promised without contracts.

“No advocate is currently being paid without internal review,” she said, noting that all payments are now vetted against the Advocates' Remuneration Order.

A task force set up to review legal bills has so far looked at 162 files worth Sh7 billion. Already, Sh375.9 million has been paid for legal services, but many claims are being rejected due to a lack of justification.

Ireri said some lawyers were promised large payments without checks. “We found one advocate who had been promised Sh1 billion. That is not only shocking but unacceptable,” she said.

The county’s legal department has only 24 lawyers, including the county attorney, forcing it to outsource most legal work. Governor Sakaja’s administration plans to hire 20 more lawyers to reduce reliance on external law firms.

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Ireri admitted that some lawyers are unhappy with the new system.

“Many of them expected to be paid the full amounts they negotiated with individual county officials. But we must prioritise transparency and fiscal responsibility,” she said.

She insisted the review process is essential to protect public resources and restore accountability.

“We need to build a system that protects public resources, holds people accountable, and ensures legal representation is based on merit and not personal deals,” Ireri added.