Nairobi MCAs Launch Probe into Alleged Sh10.7 Billion Fraudulent Payments to Law Firms

The Nairobi County Assembly’s Public Accounts Committee has initiated a high-stakes investigation into what is being described as a Sh10.7 billion "money heist" involving fraudulent legal claims and payments to law firms by the Nairobi County government. The probe, sparked by concerns over inflated legal fees, undocumented payments, and questionable court cases, has placed City Hall’s financial practices under intense scrutiny.

At the heart of the investigation is a series of suspicious transactions involving payments to at least 11 law firms, with claims totaling Sh10.7 billion. According to the Public Accounts Committee, chaired by Ngara MCA Mwaura Chege, the county has suffered significant financial losses due to:

• Inflated Legal Fees: Law firms have been accused of charging exorbitant amounts for legal services, often without proper documentation or justification.

• Manufactured Court Cases: Some cases appear to have been fabricated or manipulated to extract payments from the county, raising questions about collusion between county officials and external legal entities.

• Undocumented Payments: A notable instance includes a Sh30 million payment to a law firm without a case file, legal opinion, or contract, highlighting a severe lack of oversight.

A key case under investigation dates back to 2014, when Nairobi County demanded Sh5.3 million in land rates from Yellow Horse Inn Limited, a private tenant. During court proceedings, City Hall abruptly changed its position, claiming ownership of the same land, which was later sold. Baba Dogo MCA Geoffrey Majiwa revealed that the parcel in Ruaraka, originally earmarked for a public fire station, now hosts a private fire station, with the county entangled in legal battles to reclaim it. “There’s a clear failure in due diligence,” Majiwa stated, pointing to inconsistencies in how the county handled the case.

The investigation has exposed systemic weaknesses in Nairobi County’s legal department, which currently employs only 24 lawyers, including County Attorney Christine Ireri. This limited capacity has forced the county to outsource most of its legal work, leading to reliance on external law firms. However, the lack of proper contracts and oversight has created opportunities for exploitation. Ireri, who has been in office for less than a year, admitted that many legal fees were promised based on informal negotiations with county officials rather than formal agreements.

“Many lawyers expected to be paid the full amounts they negotiated with individual county officials,” Ireri said. “But we must prioritize transparency and fiscal responsibility.” She emphasized the need for a robust system to protect public resources and ensure accountability in legal representation.

The probe also builds on earlier concerns raised by MCAs in 2020, when it was revealed that City Hall paid Sh795.9 million to law firms out of a Sh2.5 billion budget for clearing pending bills, sidelining smaller suppliers and contractors. This favoritism prompted calls for a policy to streamline the outsourcing of legal services, a demand that has yet to be fully addressed.

Governor Johnson Sakaja’s administration has pledged to address the issue by hiring 20 additional lawyers to bolster the county’s in-house legal capacity and reduce dependence on external firms. This move aims to curb the financial hemorrhaging caused by outsourcing and ensure better oversight of legal expenditures. However, some lawyers have resisted the new system, reportedly frustrated by the county’s push for transparency and merit-based payments.

The investigation comes amid heightened public and political pressure to address corruption and mismanagement in Nairobi County. The Ethics and Anti-Corruption Commission (EACC) has previously investigated similar issues, including payments to 25 law firms between 2013 and 2020, one of which was linked to Senate Majority Whip Irung’u Kang’ata. Kang’ata dismissed those probes as politically motivated, and similar sentiments have been echoed by some officials in the current investigation.

The Public Accounts Committee is now reviewing case files, contracts, and payment records to determine the extent of the fraud and identify those responsible. The probe is expected to shed light on whether county officials colluded with law firms to siphon public funds and could lead to legal action against implicated parties.

The allegations have sparked outrage among Nairobi residents, who are demanding accountability for the misuse of public funds. On social media platforms like X, discussions about the scandal are trending, with users calling for swift action and stricter financial controls at City Hall. The investigation is seen as a critical step toward restoring public trust in the county’s governance.

As the probe continues, the Public Accounts Committee has vowed to leave no stone unturned. “We need to build a system that protects public resources, holds people accountable, and ensures legal representation is based on merit,” Ireri reiterated. The committee is expected to release a detailed report in the coming months, which could have far-reaching consequences for Nairobi County’s administration and its legal practices.