The Court of Appeal has stepped in to provide Nairobi County with a temporary lifeline, halting a High Court ruling that had dismantled the Nairobi Alcoholic Drinks Control Fund. This decision allows the county to continue managing the fund, ensuring alcohol regulation remains intact until the final judgment arrives in November 2025.
The dispute over the Alcoholic Drinks Control Fund began in March 2025 when Justice Lawrence Mugambi ruled that Sections 43 and 44 of the Nairobi City County Alcoholic Drinks Control and Licensing Act violated the Constitution. He determined that the county had failed to comply with the Public Finance Management Act, particularly in ensuring transparency and oversight. Consequently, he ordered that all funds deposited into the account be redirected to the County Revenue Fund Account until a legally compliant public fund could be established.
Justice Mugambi’s ruling halted the operations of the Alcoholic Drinks Control Board, which issues licenses and enforces compliance with alcohol regulations in Nairobi. County officials strongly opposed the decision, arguing that it crippled their ability to regulate alcohol sales effectively. As a result, they swiftly filed an appeal.
A three-judge panel—Justices S. Gatembu Kairu, Jamila Mohammed, and Weldon Korir, granted an interim order that temporarily prevents the High Court’s decision from taking effect. This ruling ensures that the Alcoholic Drinks Control Fund remains operational until the Court of Appeal delivers its final judgment on November 7, 2025.
Lawyer Duncan Okatch, representing Nairobi County, underscored the necessity of the fund in enforcing alcohol regulations. He explained, “The High Court’s decision has paralyzed the Alcoholic Drinks Control Board, making it difficult for the county to regulate the sector effectively.
For now, Nairobi County can continue managing the Alcoholic Drinks Control Fund, but uncertainty looms.
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