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Post Reply: Nairobi County Owes Sh6.3 Billion to Four Advocates, Auditor General Reveals

<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 12, 2025, 9:00 am</div><div id="pl-7474"  class="panel-layout" ><div id="pg-7474-0"  class="panel-grid panel-no-style" ><div id="pgc-7474-0-0"  class="panel-grid-cell"  data-weight="1" ><div id="panel-7474-0-0-0" 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 []">Nairobi County is grappling with a significant financial burden, as revealed by a recent audit report from Auditor General Nancy Gathungu. The report highlights that the county government, under Governor Johnson Sakaja, owes a staggering Sh6.3 billion to just four advocates, accounting for 29 percent of the county's total outstanding legal fees of Sh21.4 billion. This amount represents 11 percent of the county's total executive pending bills, raising serious concerns about financial mismanagement and accountability.</p>
<p dir="ltr">The audit report details that the Sh6.3 billion owed to the four advocates is part of a larger pool of Sh21.4 billion in unpaid legal fees accumulated by Nairobi County. These fees stem from legal services provided to the county, but the report notes a lack of transparency and documentation to justify the exorbitant costs. Specifically, the Auditor General pointed out that payments to these advocates were often irregular, with some claims unsupported by proper documentation. This lack of accountability has fueled questions about how such a significant debt was allowed to accrue under the current administration.</p>
<p dir="ltr">The report further indicates that the county's legal expenditure surpasses its own revenue collection, a situation that underscores the severity of the financial strain. For context, Nairobi County's annual revenue collection has been reported to be significantly lower than the Sh21.4 billion owed in legal fees alone, highlighting a troubling imbalance in financial priorities.</p>
<p dir="ltr">Auditor General Nancy Gathungu expressed alarm over the county's spending practices, particularly the allocation of funds to legal fees at the expense of critical public services. The report notes that the excessive expenditure on legal services has contributed to the underfunding of essential sectors such as healthcare, infrastructure, and waste management. Gathungu emphasized that the county's failure to apply sanctions on those responsible for mismanaging funds has exacerbated the issue, allowing irregular payments to persist unchecked.</p>
<p dir="ltr">The Auditor General also highlighted that the payments to the four advocates were not only substantial but also lacked proper justification in many cases. This raises questions about the nature of the legal services provided and whether they were necessary or competitively sourced. The report calls for stricter oversight and accountability measures to prevent further financial hemorrhage.</p>
<p dir="ltr">The revelation of the Sh6.3 billion debt comes amid broader concerns about Nairobi County's financial management. The audit report also uncovered issues such as stalled multi-million shilling projects and the employment of thousands of irregularly hired staff, further straining the county's resources. These findings paint a picture of systemic inefficiencies that have hindered service delivery and eroded public trust in the county's leadership.</p>
<p dir="ltr">Nairobi County has faced criticism for prioritizing recurrent expenditure, including legal fees and employee compensation, over development projects. For instance, a separate report indicated that the county spent Sh19.38 billion on recurrent expenditure, with Sh12.27 billion allocated to employee compensation and Sh6.12 billion for operations and maintenance. This skewed allocation has left little room for capital investments, contributing to the stalling of critical infrastructure projects.</p>
<h2 dir="ltr">Implications for Nairobi County</h2>
<p dir="ltr">The ballooning legal fees pose a significant challenge for Governor Sakaja's administration, which has been under scrutiny for its handling of public funds. The Sh6.3 billion owed to the four advocates represents a substantial portion of the county's budget, which could have been directed toward improving public services such as water supply, healthcare, and road maintenance. The financial strain also raises concerns about the county's ability to meet its obligations to other creditors, including Kenya Power, which claims that City Hall owes Sh3 billion in unpaid electricity bills.</p>
<p dir="ltr">Moreover, the lack of transparency surrounding the legal fees has sparked calls for a thorough investigation into the county's procurement processes for legal services. Residents and stakeholders are demanding answers on how such a significant debt was incurred and why payments to a small group of advocates account for such a large share of the county's liabilities.</p>
<p dir="ltr">The Auditor General's report has prompted renewed calls for accountability and reform within Nairobi County's financial management systems. Stakeholders, including Nairobi Members of the County Assembly (MCAs), have launched a probe into what they describe as "fraudulent" legal claims totaling Sh10.7 billion. This investigation aims to uncover the root causes of the excessive legal expenditure and hold those responsible accountable.</p>
<p dir="ltr">Additionally, there is growing pressure on Governor Sakaja to implement measures to curb wasteful spending and prioritize development projects that directly benefit Nairobi residents. The county government has been urged to streamline its legal services procurement process, ensuring that contracts are awarded transparently and that payments are supported by verifiable documentation.</p>
<p dir="ltr">The issue of excessive legal fees is not unique to Nairobi County. The Auditor General's report for the year ending June 2024 revealed that over 20 counties across Kenya spent more than Sh15 billion on legal fees, travel, and allowances, often at the expense of public services. This widespread issue highlights a systemic problem in county governance, where recurrent expenditure frequently overshadows development priorities.</p>
<p dir="ltr">In Nairobi's case, the financial mismanagement extends beyond legal fees. The county has been criticized for its handling of other issues, such as unpaid land rates, which have prompted City Hall to threaten auctions for defaulters. Additionally, stalled projects and the presence of ghost workers on the county's payroll have further eroded confidence in the administration's ability to manage public resources effectively.</p>
<p dir="ltr">The revelation that Nairobi County owes Sh6.3 billion to just four advocates is a stark reminder of the financial challenges facing the county. Auditor General Nancy Gathungu's report underscores the need for urgent reforms to address irregular spending, improve transparency, and prioritize public service delivery. As Nairobi County navigates this crisis, residents and stakeholders will be watching closely to see how Governor Sakaja's administration responds to these damning findings and works to restore fiscal discipline.</p>
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