Court Clears Way for Nairobi County to Resume Financial Operations

The High Court has directed the Central Bank of Kenya (CBK) to restore Nairobi County’s banking mandate. The ruling removes a procedural obstacle that had disrupted county payments and other financial operations.

Justice David Mburu ordered CBK to immediately recognise Nairobi Finance Executive Ibrahim Auma Nyangoya as an authorised signatory after finding that the bank’s requirements could not reasonably be fulfilled.

CBK had declined to update the county’s banking mandate because its procedures require both the incoming and outgoing finance executives to appear in person to verify account balances. However, the process stalled after former Finance Executive Charles Kerich could not be traced following reports that warrants of arrest had been issued against him in a separate criminal matter.

Governor Johnson Sakaja appointed Nyangoya as County Executive Committee Member for Finance and Economic Planning on June 5, with the appointment gazetted on June 24 before the county sought changes to its account signatories.

In his ruling, Justice Mburu said Kerich’s absence had made compliance with the bank’s procedure impossible and should not stand in the way of implementing a lawful appointment or leave a critical county office unable to function.

The court consequently directed CBK to amend Nairobi County’s banking mandate without requiring Kerich’s participation, paving the way for the county government to resume normal financial operations and meet its constitutional and statutory obligations.