NAIROBI, Kenya – The Court of Appeal has granted Nairobi County a temporary reprieve by suspending the execution of a High Court decision that declared the Nairobi Alcoholic Drinks Control Fund unconstitutional.
In an interim ruling delivered by a three-judge bench—Justices Gatembu Kairu, Jamila Mohammed, and Weldon Korir—the court stayed Justice Lawrence Mugambi’s March 6, 2025, decision, pending a final determination scheduled for November 7 this year.
“In the circumstances, an interim order of stay of execution of the judgment of the High Court… is granted pending the delivery of the ruling of this Court,” the judges stated.
The contested ruling by Justice Mugambi found that Sections 43 and 44 of the Nairobi City County Alcoholic Drinks Control and Licensing Act contravened the Constitution.
He ruled that the creation and management of the fund failed to meet the requirements of the Public Finance Management Act, particularly regarding transparency and oversight.
Mugambi further directed that all monies previously deposited into the Alcoholic Drinks Control Fund be redirected to the County Revenue Fund, until a compliant framework is established.
The County Government, through lawyer Duncan Okatch, moved to the appellate court seeking a stay, arguing that the High Court judgment had crippled the operations of the Nairobi City County Alcoholic Drinks Control Board.
“We urged the Court to grant interim orders of stay of execution pending the delivery of the ruling as sought in prayer 3 of the Notice of Motion,” Okatch submitted.
The final ruling in November is expected to set a precedent not only for Nairobi but potentially for similar funds established by other counties.
It could reshape how devolved units manage earmarked public resources, especially in sectors like health, licensing, and social regulation.
