MCAs Investigate City Hall’s Sh10 Billion ‘Money Heist’ Paid Fraudulently To Law Firms

Nairobi County Assembly launches comprehensive probe into questionable legal payments amid allegations of manufactured cases and inflated bills

Nairobi Members of County Assembly have launched a damning investigation into what they describe as a systematic “money heist” involving fraudulent legal claims worth Sh10.7 billion paid to law firms under highly questionable circumstances.

The explosive probe, spearheaded by the County Assembly’s Public Accounts Committee, has uncovered a web of financial impropriety involving manufactured court cases, inflated legal bills, and suspicious payments made without proper documentation or oversight.

The Yellow Horse Inn Scandal

At the heart of the investigation lies a bizarre 2014 case that epitomizes the alleged fraud. Nairobi County initially issued a demand notice to Yellow Horse Inn Limited for Sh5.3 million in land rates, treating the property as privately owned according to the county’s own records.

However, in a shocking twist during court proceedings, City Hall completely changed its position, suddenly claiming ownership of the same land it had been demanding rates from.

This dramatic reversal, MCAs argue, signals a deliberately manufactured dispute designed to benefit both county officials and private law firms.

To defend this new stance, the county retained Momanyi and Associates Advocates, which promptly issued a staggering fee note of Sh80 million, later “reduced” to Sh34 million.

Crucially, no contract, itemized invoice, internal legal memo, or formal correspondence has been provided to justify this enormous cost.

“If the county can issue a demand for land rates to an individual only to later claim ownership of the same land, does that not signal a failure of due diligence?” questioned Ngara MCA Mwaura Chege, who chairs the Public Accounts Committee.

Pattern of Suspicious Payments

The investigation has revealed a disturbing pattern of questionable legal payments across multiple cases:

Traffic Marshal Recruitment Case: When Nairobi County was sued over alleged corruption in recruiting traffic marshals, it engaged Gikunda Miriti and Company Advocates. The firm issued a bill of Sh100 million, later revised to Sh67 million, which was paid in June 2023 without adequate justification.

Undocumented Sh30 Million Payment: Perhaps most alarmingly, the county made a Sh30 million payment to another law firm despite the complete absence of supporting documents, including no case file, legal opinion from the county’s legal department, or contract.

The Ruaraka Fire Station Fiasco: Baba Dogo MCA Geoffrey Majiwa highlighted another troubling case where a parcel in Ruaraka earmarked for a fire station became embroiled in manufactured litigation. “A demand was issued, rates were paid, and the land was eventually sold. There’s now a private fire station on public land, and the county is in court trying to reclaim it,” he revealed.

Scale of the Crisis

The investigation has uncovered that 44 law firms pocketed Sh1.3 billion in legal fees from Nairobi City County in just one year between October 2022 and January 2024. The most recent requisitions in January 2024 alone totaled Sh136 million to 11 different law firms.

Some of the major payments include:

• Kwanga Mboya and Company Advocates: Sh125 million
• Swanya and Company Advocates: Sh85 million
• Makallah Theuri: Sh73 million
• Gikunda Miriti and Company: Sh67 million
• MMA Advocates: Sh57 million

Currently, 11 law firms are demanding a total of Sh10.7 billion from the county government, prompting widespread public outcry and the current investigation.

Systemic Failures and Lack of Oversight

County Attorney Christine Ireri, who has been in office for less than a year, acknowledged the scale of the problem. “We found one advocate who had been promised Sh1 billion. That is not only shocking but unacceptable,” she revealed.

The crisis stems partly from the county’s limited legal capacity. With only 24 lawyers including the county attorney to handle hundreds of active cases, the county has been forced to rely heavily on external law firms—a situation that has allegedly been systematically exploited.

“Some of these payments were committed by a single individual without any oversight,” Ireri explained, highlighting the lack of proper checks and balances that allowed the fraud to flourish.

The Cleanup Operation

Governor Johnson Sakaja’s administration has established a taskforce to audit and review all pending legal bills. So far, the taskforce has reviewed 162 files totaling Sh7 billion in claims, with many expected to be significantly reduced or rejected entirely.

The county has implemented new measures requiring all legal fees to adhere to the Advocates Remuneration Order and undergo internal review before payment. “No advocate is currently being paid without internal review,” Ireri emphasized.

The administration also plans to hire an additional 20 lawyers to reduce reliance on external law firms and prevent future exploitation of the system.

Resistance and Tensions

The cleanup efforts have created tension between the county government and members of the legal fraternity. Some lawyers have reportedly expressed frustration over the new vetting process, arguing it undermines previous agreements.

“Many of them expected to be paid the full amounts they negotiated with individual county officials. But we must prioritize transparency and fiscal responsibility,” Ireri stated.

The Nairobi legal fees scandal reflects a broader crisis affecting county governments across Kenya. Auditor General Nancy Gathungu has previously raised concerns about the huge pending legal bills crisis, noting that in some cases, legal fees exceed counties’ own revenue collections.

The investigation has also raised serious questions about governance, accountability, and the vulnerability of public resources to systematic exploitation through manufactured legal disputes.

As the Public Accounts Committee continues its investigation, MCAs are calling for comprehensive reforms to prevent similar scandals in the future. The probe is expected to result in recommendations for stronger oversight mechanisms, clearer procurement procedures for legal services, and potential criminal referrals for those found to have defrauded the county.

“We need to build a system that protects public resources, holds people accountable, and ensures legal representation is based on merit and not personal deals,” Ireri concluded.