NAIROBI — The Court of Appeal has paused a High Court decision that had declared the Nairobi Alcoholic Drinks Control Fund unconstitutional, offering the county government a temporary lifeline.
In a ruling delivered this week, a three-judge bench granted Nairobi County an interim order to stay the judgment. This means the county can continue running the fund—at least for now.
“In the circumstances, an interim order of stay of execution of the judgment of the High Court… is granted pending the delivery of the ruling of this Court on 7th November 2025,” read the official ruling.
The bench—made up of Justices Gatembu Kairu, Jamila Mohammed, and Weldon Korir—will hear arguments from both sides and make a final decision later this year.
Background to the Case
In March, Justice Lawrence Mugambi of the High Court ruled that key sections of the Nairobi City County Alcoholic Drinks Control and Licensing Act were unconstitutional. He pointed specifically to Sections 43 and 44, saying they failed to meet national standards on how public money should be handled.
According to the judge, the creation and operation of the fund lacked transparency. It also did not follow the rules laid out in the Public Finance Management Act. In his view, that made it unlawful.
“All money previously deposited into the fund must now be moved to the County Revenue Fund,” Justice Mugambi ordered at the time. That order essentially shut down the Alcoholic Drinks Control Fund, freezing its activities.
Nairobi County Pushes Back
But Nairobi County quickly challenged the ruling.
Lawyer Duncan Okatch, representing the county, argued that the High Court decision had crippled a key part of local governance. “We urged the Court to grant interim orders of stay,” he told the judges, “so that the board can continue with its essential duties while we wait for the appeal to be decided.”
The Alcoholic Drinks Control Board is responsible for issuing licences and monitoring compliance with alcohol laws in the city. County officials say the board has been unable to do its work since the High Court’s ruling.
What Happens Next?
The pause issued by the Court of Appeal means the fund will continue operating until November, when a final ruling is expected.
Legal analysts say the outcome could affect more than just Nairobi. “This isn’t just about one fund,” said a Nairobi-based constitutional lawyer who spoke on condition of anonymity. “Other counties are watching closely. If the High Court’s decision stands, they may have to review how they manage similar funds.”
As of now, the battle continues in court.
Whether Nairobi County’s fund survives beyond November will depend on whether the judges agree it was set up lawfully—or not.
