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<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on August 7, 2025, 8:00 am</div><div id="pl-7413"  class="panel-layout" ><div id="pg-7413-0"  class="panel-grid panel-no-style" ><div id="pgc-7413-0-0"  class="panel-grid-cell"  data-weight="1" ><div id="panel-7413-0-0-0" class="so-panel widget widget_sow-editor panel-first-child panel-last-child" data-index="0" data-style="{&quot;background_image_attachment&quot;:false,&quot;background_display&quot;:&quot;tile&quot;,&quot;background_image_size&quot;:&quot;full&quot;,&quot;background_image_opacity&quot;:&quot;100&quot;,&quot;border_thickness&quot;:&quot;1px&quot;}" ><div
			
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	<p dir="ltr" data-pm-slice="1 1 []">A recent report by Auditor General Nancy Gathungu has revealed that more than 20 counties in Kenya spent over Sh15 billion on legal fees, raising concerns about financial mismanagement as essential services like healthcare and education continue to struggle. The report highlights significant expenditure on legal consultancies and litigation, often at the expense of critical public services, prompting calls for greater accountability and transparency in county spending.</p>
<p dir="ltr">The Auditor General’s findings indicate that counties have prioritized hefty legal budgets over addressing pressing needs in hospitals, schools, and infrastructure. In some counties, legal fees accounted for a substantial portion of operational budgets, with millions spent on private law firms and legal consultants. For instance, one county reportedly paid Sh500 million in a single year to external lawyers for cases that could have been handled by in-house legal teams or resolved through alternative dispute resolution mechanisms.</p>
<p dir="ltr">This expenditure comes at a time when county hospitals face severe shortages of medical supplies, unpaid health workers, and dilapidated facilities. A separate audit report earlier this year exposed the poor state of health services in several counties, with some hospitals unable to provide basic care due to lack of funding. Similarly, schools in affected counties have reported inadequate resources for teachers and students, with some lacking basic infrastructure like classrooms and sanitation facilities.</p>
<p dir="ltr">The report points to specific counties where legal spending has been particularly high. While exact figures vary, the collective sum of Sh15 billion across more than 20 counties underscores a systemic issue. The Auditor General noted that some counties engaged in unnecessary litigation, prolonging disputes that could have been settled out of court, thus inflating legal costs. In other cases, counties hired external firms for routine legal work, bypassing more cost-effective internal resources.</p>
<p dir="ltr">The diversion of funds to legal fees has exacerbated financial strain in counties already grappling with delayed disbursements from the National Treasury. In April 2025, the Treasury released Sh15.1 billion to 22 counties to ease a cash crunch that had stalled operations and delayed salaries. Despite this relief, a backlog of Sh65.84 billion owed for March and April remains pending, further complicating service delivery. Governors have repeatedly warned that inconsistent funding disrupts their ability to pay workers and suppliers, threatening the continuity of essential services.</p>
<p dir="ltr">The Council of Governors has voiced strong concerns over the issue, with Chairperson Ahmed Abdullahi emphasizing the need for timely disbursements. He warned that without immediate action from the Treasury, counties might face a complete shutdown of operations. The Public Finance Management Act of 2012 mandates that county funds be released by the 15th of each month, but this timeline is frequently missed, compounding financial challenges.</p>
<p dir="ltr">The prioritization of legal fees over critical services has drawn sharp criticism from residents and advocacy groups. In counties like Nakuru, which received the highest share of the recent Treasury disbursement at Sh1.61 billion, citizens have questioned why funds are not directed toward improving healthcare and education. Similar sentiments have been echoed in Turkana, Kilifi, and other counties where allocations were substantial but service delivery remains inadequate.</p>
<p dir="ltr">The Auditor General’s report has sparked renewed calls for reforms in county financial management. Gathungu emphasized the need for counties to adopt cost-saving measures, such as strengthening in-house legal departments and prioritizing mediation over litigation. She also urged counties to enhance transparency in their procurement processes for legal services, as some contracts with private firms were flagged for irregularities.</p>
<p dir="ltr">The Ethics and Anti-Corruption Commission (EACC) has taken note of the findings and announced plans to intensify oversight of county transactions. In June 2025, the EACC warned county heads of legal action against those involved in fraudulent financial practices, including inflated legal contracts. The commission is currently investigating several cases of mismanagement, with some counties accused of paying for legal services that were never rendered.</p>
<p dir="ltr">Additionally, a Senate watchdog committee has criticized the EACC, the Directorate of Criminal Investigations, and the Office of the Director of Public Prosecutions for slow progress in addressing graft cases in counties. Senator Moses Kajwang’ called for a coordinated effort to combat corruption, questioning the leadership of anti-corruption initiatives. The committee’s findings align with an earlier EACC report that exposed widespread corruption, including a case where one county employee allegedly earned Sh15 million over a decade through fraudulent means.</p>
<p dir="ltr">The excessive spending on legal fees raises broader questions about the effectiveness of devolution in Kenya. While devolution was intended to bring services closer to the people, mismanagement of funds has undermined this goal in many counties. The Auditor General’s report suggests that without significant reforms, counties risk further eroding public trust in local governance.</p>
<p dir="ltr">Experts argue that counties should invest in capacity building for their legal and administrative teams to reduce reliance on external consultants. Streamlining procurement processes and adopting technology-driven solutions for dispute resolution could also help curb unnecessary expenditure. Furthermore, ensuring timely disbursements from the National Treasury is critical to stabilizing county operations and prioritizing service delivery.</p>
<p dir="ltr">Public reaction to the report has been one of frustration, with many Kenyans taking to social media to express their discontent. Residents in affected counties have called for audits of legal contracts and stricter penalties for officials involved in wasteful spending. Civil society organizations have also demanded that the National Treasury and county governments work together to address the funding backlog and prioritize essential services.</p>
<p dir="ltr">Moving forward, the Auditor General has recommended that counties submit detailed financial reports to ensure compliance with budgetary guidelines. The EACC’s ongoing investigations and the Senate’s oversight efforts are expected to shed further light on the extent of financial mismanagement in counties. In the meantime, the public awaits concrete action to address the Sh15 billion drain on legal fees and restore funding to critical services that millions of Kenyans rely on daily.</p>
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