Wamuzi News Ke
In a blistering motion filed this week at the Nairobi County Assembly, Karen MCA Anthony Maragu has exposed a spiralling legal debt burdening City Hall—more than Sh21.3 billion in unsettled legal fees—as the county teeters on the brink of financial unsustainability. The motion demands a sweeping shift away from costly litigation toward alternative dispute resolution (ADR), warning that continued legal battles are draining essential public funds.
Auditor-General’s Report Reveals Startling Imbalance
New findings from the Auditor-General’s 2023-24 financial year highlight Nairobi County as the top spender among all counties on legal costs.
- The report shows Sh21.3 billion in unpaid legal fees.
- A staggering Sh6.2 billion of that sum is owed to just four external advocates—representing nearly a third of the total due.
- Despite a fully staffed in-house legal department, many cases are outsourced to private law firms, often without competitive bidding or transparent approval processes.
Motion Calls for ADR as a First Resort
Maragu’s motion argues that litigation has become a “default option,” even for disputes that could be settled through negotiation, mediation, arbitration, or conciliation—pathways that are less adversarial, faster, and far more cost-effective.
Key demands of the motion include:
- Prioritising ADR mechanisms before resorting to court. The move asserts that many costly lawsuits could have been avoided.
- Institutionalising structured negotiation frameworks and formalising policies that enforce mediation, arbitration, conciliation, and tribunals, in line with Article 159(2)(c) of Kenya’s Constitution.
- Requiring the Nairobi County Executive, via the County Attorney’s office, to use litigation strictly as the last resort.
- The motion gives the County 60 days from its adoption to develop and implement a formal ADR policy to govern future dispute resolution.
Liability, Waste, and Public Services at Risk
The motion warns that protracted court cases and large legal awards are siphoning funds away from vital public services—from basic infrastructure to health, sanitation, and education. Officials inside the Assembly argue that without urgent reform, Nairobi could face budget shortfalls that jeopardize citizens’ well-being.
Concerns raised:
- Lack of transparency in outsourcing legal work despite existing internal capacity.
- Some advocates handling a disproportionately high number of cases (65 of the 159 external cases were managed by just eight advocates), often with no clear justification.
Governor Sakaja’s Administration Under Pressure
Governor Johnson Sakaja’s administration now faces mounting scrutiny. The motion directly challenges the decision to outsource so many cases to private advocates—decisions considered wasteful given the legal department’s staffing. Critics say City Hall has paid billions to outside lawyers even when internal resolution was possible.
If accepted, the motion will force significant policy changes in how Nairobi handles legal risk, with potential savings in the billions of shillings annually. Failure to act, the MCA warns, may lead to further legal judgments, financial liabilities, and severe strain on county services.
