https://new.kenyalaw.org/akn/ke/judgment/kehc/2026/10054

Nairobi City County Government v Central Bank of Kenya (Miscellaneous Application E041 of 2026) [2026] KEHC 10054 (KLR) (Constitutional and Human Rights) (10 July 2026) (Ruling) Neutral citation: [2026] KEHC 10054 (KLR) Republic of Kenya In the High Court at Nairobi (Milimani Law Courts) Constitutional and Human Rights Miscellaneous Application E041 of 2026 D Mburu, J July 10, 2026 IN THE MATTER OF ARTICLES 10, 159, 165, 176, 179, 183, 201, 225 AND 226 OF THE CONSTITUTION OF KENYA, 2010 AND IN THE MATTER OF SECTIONS 30, 31, 35 AND 103 OF THE COUNTY GOVERNMENTS ACT, ACT NO. 17 OF 2012 AND IN THE MATTER OF SECTIONS 103, 104, 148 AND 149 OF THE PUBLIC FINANCE MANAGEMENT ACT NO. 18 OF 2012 AND IN THE MATTER OF SECTIONS 1A, 1B AND 3A OF THE CIVIL PROCEDURE ACT, CAP 21 LAWS OF KENYA AND IN THE MATTER OF THE INHERENT JURISDICTION OF THE COURT Between The Nairobi City County Government Applicant and The Central Bank Of Kenya Respondent Ruling 1.The applicant herein, the Nairobi City County Government, approached the court through a Notice of Motion application dated 9th July 2026. The application was certified urgent and fixed for interpartes hearing on 10th July 2026. 2.The applicant seeks the following substantive orders:1.That the Court be pleased to declare that, in the peculiar circumstances of this case, compliance with the Respondent's operational requirement requiring the physical attendance and participation of the former County Executive Committee Member responsible for Finance and Economic Planning has become impossible and is hereby dispensed with for purposes of effecting the change of banking mandate relating to the Applicant's accounts maintained with the Respondent.2.That the Respondent be directed forthwith to effect the change of banking mandate, authorised signatories and all related records in respect of the Applicant's accounts by recognising Hon. Ibrahim Auma Nyangoya as the duly appointed County Executive Committee Member responsible for Finance and Economic Planning without requiring the physical attendance or participation of the former office holder.3.That the Officer in Charge of Banking Services or any other officer responsible for maintaining the Applicant's banking mandate at the Central Bank of Kenya do comply with the foregoing Orders immediately upon service thereof.4.That the costs of this application be provided for. 3.The application is founded on various grounds enumerated on the face of the Notice of Motion and further expounded in the supporting affidavit sworn by Godfrey Akumali, the Acting County Secretary and Head of County Public Service on 9th July 2026. 4.The main thrust of the application is that the Governor of Nairobi City County lawfully appointed Hon. Ibrahim Auma Nyangoya as the County Executive Committee Member responsible for Finance and Economic Planning by a letter of appointment dated 5th June 2026. Further that the said appointment was published in the Kenya Gazette on 24th June 2026 thereby giving legal notice of the appointment. 5.That following the appointment, the Applicant notified the Respondent of the change and requested it to amend its records and banking mandate to reflect the newly appointed County Executive Committee Member responsible for Finance and Economic Planning as an authorized signatory. 6.That despite receiving the relevant appointment instruments, the Respondent has been unable to update the banking mandate because compliance with its operational transition requirements has become impossible owing to the unavailability of the former office holder. 7.The Applicant contends that it remains ready and willing to comply with every operational requirement of the Respondent save only the physical attendance of the former office holder, which has become impossible through circumstances beyond the Applicant's control. 8.The Applicant further contends that the Respondent's refusal andor failure to implement the lawful appointment has rendered the Applicant unable to effectively discharge statutory public finance functions which require the participation of the County Executive Committee Member responsible for Finance and Economic Planning. 9.It is the Applicant’s position that the continued failure to update the Applicant's banking mandate has disrupted the administration of county finances, impeded the processing of payments and exposed the Applicant to the risk of default in the discharge of its constitutional and statutory obligations. 10.The Applicant further avers that the appointment of the County Executive Committee Member responsible for Finance and Economic Planning is a constitutional and statutory function of the Governor and has already taken effect. That the Applicant seeks only facilitative orders directing implementation of that appointment for purposes of operating its accounts maintained by the Respondent. 11.It is the Applicant’s position that unless the Orders sought are issued urgently, the Applicant will continue to suffer substantial prejudice while members of the public dependent upon uninterrupted county government services will similarly be adversely affected. 12.In conclusion, the Applicant avers that it is in the interests of justice, constitutional governance, public finance management and continuity of public administration that the Orders sought herein be granted. 13.I have carefully considered the application which is unopposed. From the affidavit evidence tabled by the applicant, the Applicant is simply seeking an order to facilitate the change of its accounts’ signatories following the appointment of a new County Executive Committee Member. The applicant has further explained that under the Respondent's established operational procedure, upon a change in the office of the County Executive Committee Member responsible for Finance and Economic Planning, the outgoing and incoming office holders are required to physically present themselves before the Respondent for purposes of verifying the balances held in the Applicant's accounts before the banking mandate and authorized signatories are amended. 14.It is the applicant’s position that the immediate former holder of the said office is not available for the handover, apparently because he is on the run following warrants of arrest issued against him by a court of competent jurisdiction in a separate court case, unrelated to these proceedings. For this reason, the applicant is unable to avail the former holder of the office as per the respondent’s requirement. The Applicant maintains that the unavailability of the previous office holder has been occasioned by circumstances beyond the applicant’s control. It is on this basis that the applicant seeks the intervention of the court. 15.The applicant further avers that the officers of the Respondent informed officers of the Applicant that in those circumstances the Respondent could only effect the change upon presentation of an order issued by this Honourable Court. 16.The Applicant avers that following the impasse, it has been unable to execute its constitutional mandate, as it is unable to effectively process payments, execute financial instruments and discharge various statutory obligations requiring the participation of the County Executive Committee Member responsible for Finance and Economic Planning. 17.The court is satisfied that the orders sought by the Applicant are solely facilitative and consequential orders directing the Respondent to implement an appointment already made by the Governor pursuant to the Constitution and statute. The orders will enable the Applicant execute its constitutional and statutory functions and deliver essential public services without hindrance. The office of County Executive Committee Member responsible for Finance and Economic Planning is a key office in the operational structure of a County Government and therefore, there should never be a prolonged vacuum in the said office otherwise the operations of the County Government would grind to a halt. 18.In light of the foregoing, I find that the application dated 9th July 2026 is merited. Consequently, the said application is hereby allowed in the following terms:a.That a declaration is hereby made that, in the peculiar circumstances of this case, compliance with the Respondent's operational requirement requiring the physical attendance and participation of the former County Executive Committee Member responsible for Finance and Economic Planning has become impossible and is hereby dispensed with for purposes of effecting the change of banking mandate relating to the Applicant's accounts maintained with the Respondent.b.That the Respondent is hereby ordered to forthwith effect the change of banking mandate, authorized signatories and all related records in respect of the Applicant's accounts by recognizing Hon. Ibrahim Auma Nyangoya as the duly appointed County Executive Committee Member responsible for Finance and Economic Planning without requiring the physical attendance or participation of the former office holder.c.That the Officer in Charge of Banking Services or any other officer responsible for maintaining the Applicant's banking mandate at the Central Bank of Kenya do comply with the foregoing Orders immediately upon service thereof.d.That there shall be no order on costs. DATED, SIGNED AND DELIVERED AT NAIROBI VIRTUALLY THIS 10TH DAY OF JULY, 2026.DAVID MBURUJUDGEIn the presence of:Mr. Jamal Abdinoor for the Applicant.No appearance for the respondentCourt Assistant – Kalondu.