The High Court in Nairobi has ordered a freeze on all withdrawals from the Nairobi Alcoholic Drinks Control Fund, citing legal irregularities in its establishment.

In his ruling, Justice Lawrence Mugambi declared Section 43 of the Nairobi County Alcoholic Drinks Control and Licensing Act unconstitutional. The Act had created the fund to support rehabilitation programs, alcohol awareness campaigns, and related initiatives within the county.

Justice Mugambi ruled that Section 44, which governs the fund’s creation, violated the Public Finance Management Act, stating, “Such a fund ought to have been created in strict compliance with financial laws.”

The judge added that all funds previously deposited into the account be redirected to the County Revenue Fund Account until a legally and constitutionally compliant public fund is established.

"Further scrutiny reveals that the section (of the Act) also fails to meet the transparency requirements mandated by the Public Finance Management Act," the judge added.

He also explained that the Act does not provide for the role of the County Executive Member in charge of Finance, despite the prominent role assigned to the county executive in other aspects of the Act.

This ruling comes after Rosalind Nyawira sued the Nairobi County Government arguing that the Act was enacted without adhering to public participation, in 2023.

She brought to question the manner in which the county was carrying out their mandate under the Nairobi City County Alcoholic Drinks Control and Licensing Act.

 

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