A recent audit has uncovered a staggering Sh21 billion in questionable legal fees incurred by county governments, with Nairobi emerging as the top spender. The findings, released by Auditor-General Nancy Gathungu, raise serious concerns about financial mismanagement and the potential misuse of public funds.
The audit report indicates that these legal expenses largely stem from cases involving unpaid contractors, wrongful dismissals, and irregular procurement practices. However, a deeper analysis suggests that many of the legal fees were paid without sufficient documentation, and in some cases, far exceeded the actual compensation awarded by courts.
One alarming case detailed in the report involved a county that lost a lawsuit requiring it to pay Sh1.03 million in damages. Instead, the county ended up spending Sh4.33 million in legal fees—more than four times the actual compensation.
According to Ms. Gathungu, one of the major red flags in the audit was the hiring of external legal counsel at exorbitant rates, despite counties having internal legal teams. The report further revealed that several counties bypassed competitive procurement procedures by directly appointing legal firms from prequalified lists, violating transparency and accountability requirements.
“The advocates were selected without undergoing the required competitive bidding process, raising concerns about favoritism and inflated legal costs,” Ms. Gathungu stated in her report.
The audit also found that a significant portion of legal payments lacked proper contracts between county administrations and law firms, making it difficult to justify the massive expenditures. Out of 159 verified court cases, 65 were handled by just eight law firms, raising further suspicions about collusion and possible kickbacks.
The revelations have sparked outrage among governance watchdogs and anti-corruption agencies, who are now calling for thorough investigations into the matter.
“This is a clear case of financial abuse. We need urgent action to hold accountable those responsible for this blatant misuse of public resources,” said an official from the Ethics and Anti-Corruption Commission (EACC).
With counties already struggling to meet development targets due to budgetary constraints, these findings add to growing concerns over the management of devolved funds. The national government is now under pressure to enforce stricter oversight measures to prevent further loss of taxpayer money.
As investigations unfold, the focus remains on ensuring accountability and bringing to book those found guilty of perpetuating financial mismanagement at the county level.
