The Nairobi county government got reprieve after the court of appeal stayed the execution of a High Court judgment that had declared the Nairobi Alcoholic Drinks Control Fund unconstitutional.
A three-judge bench comprising Justices Gatembu Kairu, Jamila Mohammed, and Weldon Korir stayed the judgement and it will remain in effect until the Court delivers its ruling on November 7 this year.
“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 ruled.
In March 2025, Justice Lawrence Mugambi had ruled that Sections 43 and 44 of the Nairobi City County Alcoholic Drinks Control and Licensing Act were unconstitutional.
He held that the establishment and management of the fund did not comply with the Public Finance Management Act, particularly concerning transparency and proper oversight.
The judge ordered 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.
This led the county to appeal the judgement at the Court of Appeal seeking a temporary stay of the High Court’s judgment pending the appeal.
The ruling on November 7 will be pivotal in determining the future of the Nairobi Alcoholic Drinks Control Fund and could have broader implications for the management of similar funds across other counties.
The county has argued that the critical operations of the Nairobi City County Alcoholic Drunks Control Board had been paralyzed due to the decision by Justice Mugambi.
