The Independent Electoral and Boundaries Commission is facing a deepening financial crisis that could see its assets seized and its chief executive jailed, due to ballooning unpaid legal costs now exceeding Sh441 million.

Appearing before the Senate Justice, Legal Affairs and Human Rights Committee, IEBC CEO Hussein Marjan laid bare the commission’s worsening debt situation, warning that he has already been cited for contempt of court for failure to honour cost awards, and risks imprisonment unless immediate action is taken.

“The commission CEO has been cited for contempt of court orders and risks committal to civil jail due to the Commission’s inability to settle the awarded costs,” Marjan told the committee.

He said the Sh441 million relates to legal costs awarded in various lawsuits, and is part of a larger Sh2.1 billion in legal fees that the commission has accumulated over time.

Some of these cases, including the 2022 Presidential Election petition, have seen legal expenses surge, with the commission still battling more claims expected to be concluded in the current financial year.

A large part of the legal debt – Sh554.37 million was incurred during the high-stakes presidential election petition where Azimio and other parties challenged President William Ruto’s victory.

Although negotiations have helped reduce part of the total, Marjan said further liabilities are expected as legal fees are taxed upwards after case conclusions.

“The commission anticipates additional legal bills, pending the conclusion of cases expected before the end of the current financial year,” he said.

He also cautioned that the commission’s assets could soon be auctioned as a result of the court-awarded costs, warning of further strain on an already struggling institution. This comes as the commission’s total pending obligations have now hit Sh3.79 billion, cutting across legal fees, contractor debts and service providers.

Among the other debts are Sh298.98 million owed to the Postal Corporation of Kenya for services rendered during the 2022 general election, and Sh837.60 million due to contractors who supplied goods and services.

Marjan blamed chronic underfunding from the National Treasury for the current financial mess, warning that without fresh funds, the commission will not be able to meet critical obligations – including by-elections and preparations for the 2027 polls.

“Given the current budget allocation versus the magnitude of the bills, the full amount cannot be cleared within the FY 2024–2025 budget,” he said.

Unless urgent budgetary support is extended, Marjan said the commission may soon be unable to carry out key electoral functions, with service providers likely to suspend operations over unpaid dues.

The Senate committee, chaired by Bomet Senator Hillary Sigei, has now come under pressure to push for both legislative and financial interventions to save the IEBC from collapse.

Marjan said efforts to get help from the National Treasury have so far yielded little, despite numerous appeals.

“We urge the commission to ensure adequate budgetary allocation and push for enactment of election-related legislation. These measures are essential to ensure electoral preparedness ahead of the 2027 general election,” he said.