Kenyan Counties in Legal Fees Scandal: Auditor-General Flags KSh 21.37 Billion in Questionable Payments

Nairobi, Kenya – August 6, 2025 — A new report by Auditor-General Nancy Gathungu has exposed staggering financial irregularities across Kenya’s county governments, revealing that more than KSh 21.37 billion in pending legal fees may be linked to widespread corruption and financial mismanagement.

The report, covering the financial year ending June 2024, paints a grim picture of how devolved units have increasingly relied on expensive and often undocumented legal services—raising serious questions about the abuse of public funds at the county level.

Nairobi County Tops the List

Nairobi City County, under the leadership of Governor Johnson Sakaja, emerged as the biggest culprit, with KSh 6.26 billion owed to just four legal advocates, amounting to nearly a third of the national legal fees bill among counties. This figure represents 11% of Nairobi’s total pending bills.

The Auditor-General highlighted the payments as severely lacking in transparency, citing instances where court-ordered payments (decretal sums) were settled without adequate documentation or justification. The county is currently handling over 1,000 active legal cases.

“This pattern suggests legal fees are being used as a convenient loophole to siphon public funds,” the report notes, echoing long-standing concerns over corruption in devolved units.

Widespread Abuse Across Counties

The legal fees scandal is not isolated to Nairobi. Over 20 counties were flagged for irregular or unsupported legal expenditures, totalling more than KSh 15 billion.

Siaya County, led by Governor James Orengo, paid KSh 34.6 million in unsupported legal fees, including KSh 26 million to a single firm without an audit trail.
Mombasa County spent KSh 67.5 million on a legal dispute that originally involved just KSh 8.1 million, with costs ballooning due to interest and delays.
Kilifi County disbursed KSh 71.57 million to six private lawyers, despite having no records of court appearances or executive approvals.
Tana River County paid KSh 30.7 million with no evidence of legal representation.

Other counties cited include Mandera (KSh 45.5M), Kiambu (KSh 517.3M in contingent liabilities), Kisumu (KSh 46M), and Marsabit, where KSh 10.3 million was spent defending a civil suit worth just KSh 1 million, in violation of the Advocates Remuneration Order.

In Trans Nzoia, 24 legal cases were reportedly funneled to just seven out of 36 pre-qualified firms, while Uasin Gishu spent KSh 25.5 million on external legal counsel despite having an in-house legal department.

Culture of Impunity and Systemic Graft

The Auditor-General’s findings have reinforced perceptions that Kenya’s devolved system—introduced by the 2010 Constitution to decentralize services—is increasingly plagued by graft.

According to Transparency International Kenya, counties have become “hotbeds of corruption,” driven by weak internal controls, patronage networks, and ineffective oversight. A 2023 report by the Ethics and Anti-Corruption Commission (EACC) found county offices among the most bribe-prone institutions, with the average bribe doubling to KSh 11,625.

Critics have also raised concerns about the misuse of the Integrated Financial Management System (IFMIS), which was designed to enhance accountability but is reportedly being manipulated to conceal fraudulent transactions.

Public Outcry and Policy Gaps

The scandal has sparked widespread public outrage. Kenyans on social media, including prominent voices like @OkiyaOmtatah, have highlighted similar cases of grand theft in other counties. In Busia, for instance, over KSh 5.2 billion meant for development is alleged to have been looted through opaque legal settlements.

The public has questioned how critical services such as healthcare and education remain underfunded, while billions are directed to questionable legal payments. In Mombasa, KSh 10 million was spent on non-functional container clinics, illustrating the real-world impact of misallocated funds.

Experts Call for Reform

Governance experts and civil society groups are now calling for urgent reforms to close legal loopholes and improve accountability in counties. Proposals include:

Amending procurement laws to prohibit outsourcing legal services when internal legal teams exist.
Strengthening the Leadership and Integrity Act (2013) to prevent public officials from benefiting from contracts.
Enacting whistleblower protections to encourage the reporting of corruption.
Expanding the mandate of the EACC to prosecute repeat offenders and recover stolen assets.

While the EACC’s National Ethics and Anti-Corruption Policy (2018) has laid the groundwork for reform, analysts argue that a lack of political will remains the biggest barrier to accountability.

Government Response

Some county administrations have since promised internal reviews of their legal spending, but tangible action remains limited. The National Assembly is currently considering new legislation to regulate legal outsourcing in public institutions. Meanwhile, the EACC continues investigations into high-profile cases, though progress remains slow.

Kenya’s performance on the 2024 Corruption Perceptions Index remains dismal—scoring just 32 out of 100, and ranking 121 out of 180 countries globally.

Conclusion

As Auditor-General Gathungu’s revelations continue to stir national debate, the legal fees scandal underscores the need for deeper structural reforms in Kenya’s devolved governance system. Without urgent action, the billions lost to fraudulent legal expenditures will continue to rob Kenyans of essential services and erode trust in public institutions.