Appeals court halts ruling against Nairobi Alcoholic Drinks Control Fund

The Court of Appeal has temporarily halted the enforcement of a High Court decision that declared the Nairobi Alcoholic Drinks Control Fund unconstitutional, providing Nairobi County with a temporary relief.

In its ruling, the court stated, “An interim stay on the execution of the judgment issued by High Court Justice Mugambi on March 6, 2025, is hereby granted until the Court delivers its final decision on November 7, 2025.”

This interim stay was issued by a panel of three judges S.Gatembu Kairu, Jamila Mohammed, and Weldon Korir and will remain in place until the Court of Appeal makes its ruling later this year.

In March 2025, High Court Justice Lawrence Mugambi ruled that Sections 43 and 44 of the Nairobi City County Alcoholic Drinks Control and Licensing Act were unconstitutional.

He determined that the creation and management of the fund violated the Public Finance Management Act, citing issues related to transparency and oversight.

As a result, Justice Mugambi ordered that all monies previously deposited into the fund be transferred to the County Revenue Fund Account until a legally compliant public fund is established.

In response, Nairobi County, through lawyer Duncan Okatch, filed an appeal at the Court of Appeal and requested a temporary stay of the High Court’s ruling while the appeal is underway.

“We requested the Court to grant an interim stay on the execution of the judgment, as outlined in prayer 3 of the Notice of Motion,” the county’s legal team told the court.

The November 7 ruling will be crucial in deciding the fate of the Nairobi Alcoholic Drinks Control Fund and may set a precedent affecting the management of similar funds in other counties.

In the appeal, lawyer Duncan Okatch argued that Justice Mugambi’s decision had effectively crippled the essential functions of the Nairobi City County Alcoholic Drinks Control Board.