The Court of Appeal has granted Nairobi County temporary relief by staying the execution of a High Court ruling that declared the Nairobi Alcoholic Drinks Control Fund unconstitutional.
In an interim order issued by a three-judge bench comprising Justices S. Gatembu Kairu, Jamila Mohammed, and Weldon Korir, the appellate court paused the implementation of the March 6 judgment by Justice Lawrence Mugambi. The stay will remain in effect until November 7, 2025, when the Court of Appeal is expected to deliver its final ruling on the matter.
“In the circumstances, an interim order of stay of execution of the judgment of the High Court Justice Mugambi, J dated 6th March 2025 is granted pending the delivery of the ruling of this Court on 7th November 2025,” the court stated.
Justice Mugambi had found Sections 43 and 44 of the Nairobi City County Alcoholic Drinks Control and Licensing Act to be unconstitutional, citing non-compliance with the Public Finance Management Act. He ruled that the fund lacked the required transparency and oversight, ordering that all monies previously deposited be transferred to the County Revenue Fund Account.
Nairobi County, through lawyer Duncan Okatch, appealed the decision, arguing that it had effectively paralyzed the operations of the Nairobi City County Alcoholic Drinks Control Board. During the appeal, Okatch urged the court to suspend the judgment to prevent further disruption of the board’s critical functions.
The upcoming ruling in November is expected to set a legal precedent on the establishment and governance of similar public funds in other counties.
Written By Rodney Mbua
