The Court of Appeal has temporarily suspended the High Court’s ruling that declared the Nairobi City County Alcoholic Drinks Control and Licensing Fund unconstitutional, offering a reprieve to the county government as it challenges the decision.
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In its ruling, the appellate court granted a stay pending the determination of an appeal filed by the Nairobi County Government. The county is contesting the High Court’s May 2025 judgment that found the fund had not been legally established under the Public Finance Management Act and the Constitution.
The Fund, established under the Nairobi City County Alcoholic Drinks Control and Licensing Act, 2014, has been used to collect and manage revenue from liquor licenses and to fund anti-alcohol abuse campaigns. However, in a case filed by a civil society group, the High Court ruled that the fund was irregularly established, citing the absence of necessary legal and administrative frameworks under national public finance law.
In the stay order issued this week, the appellate judges noted that the county government had demonstrated sufficient grounds for appeal and that halting the High Court’s decision was in the public interest to prevent disruption of essential services and funding programs.
“The County Government has raised weighty legal questions that deserve consideration by the appellate court,” read the ruling in part. “Granting a stay ensures continuity of programs supported by the fund while protecting the county’s administrative functions from immediate harm.”
County officials welcomed the ruling, stating that the fund plays a critical role in regulating the alcohol industry and supporting rehabilitation initiatives across Nairobi.
Legal experts say the final decision on the matter could have wide-reaching implications for how counties across Kenya establish and manage special-purpose funds. The case is now set to proceed to a full hearing at the Court of Appeal in the coming months.
Communities spared disruption as court freezes ruling on alcohol fund
The Court of Appeal has temporarily suspended the High Court’s ruling that declared the Nairobi City County Alcoholic Drinks Control and Licensing Fund unconstitutional, offering a reprieve to the county government as it challenges the decision.
In its ruling, the appellate court granted a stay pending the determination of an appeal filed by the Nairobi County Government. The county is contesting the High Court’s May 2025 judgment that found the fund had not been legally established under the Public Finance Management Act and the Constitution.
The Fund, established under the Nairobi City County Alcoholic Drinks Control and Licensing Act, 2014, has been used to collect and manage revenue from liquor licenses and to fund anti-alcohol abuse campaigns. However, in a case filed by a civil society group, the High Court ruled that the fund was irregularly established, citing the absence of necessary legal and administrative frameworks under national public finance law.
In the stay order issued this week, the appellate judges noted that the county government had demonstrated sufficient grounds for appeal and that halting the High Court’s decision was in the public interest to prevent disruption of essential services and funding programs.
“The County Government has raised weighty legal questions that deserve consideration by the appellate court,” read the ruling in part. “Granting a stay ensures continuity of programs supported by the fund while protecting the county’s administrative functions from immediate harm.”
County officials welcomed the ruling, stating that the fund plays a critical role in regulating the alcohol industry and supporting rehabilitation initiatives across Nairobi.
Legal experts say the final decision on the matter could have wide-reaching implications for how counties across Kenya establish and manage special-purpose funds. The case is now set to proceed to a full hearing at the Court of Appeal in the coming months.
