Former Nairobi Finance Chief Executive Committee Member Charles Kerich has been spared a three-month jail term after striking a last-minute agreement that convinced the High Court to lift contempt orders issued against him in a Sh106 million legal fees dispute.
The breakthrough came after Kerich and Kwengu and Company Advocates informed the court on Thursday that they had agreed on a payment plan to settle the long-running debt. As part of the arrangement, Kerich paid Sh30 million, with the remaining amount set to be cleared according to a schedule presented before the court.
After considering the agreement, the court ruled that the contempt orders would no longer stand, noting that Kerich had shown remorse over the matter.
The decision marks a major turnaround for the former county finance boss, who only weeks ago had been ordered to surrender to prison within three days after being found guilty of contempt of court.
The court had further directed that if he failed to hand himself over within the stipulated period, police should arrest him immediately and treat him as a fugitive from justice.
When the matter came up for mention on Thursday, lawyers representing both sides informed the court that they had resolved the dispute and agreed on how the outstanding legal fees would be settled.
Kerich told the court that payment of the debt had been delayed by county bureaucracy. He confirmed that Sh30 million had already been paid to the law firm, while the outstanding balance would be cleared through the agreed payment schedule filed before the court.
The dispute stems from unpaid legal fees owed to Kwengu and Company Advocates, which represented the Nairobi City County Government in a number of court cases.
The case had also attracted political attention after Kerich's absence led members of the Nairobi County Assembly to seek an explanation from Governor Johnson Sakaja over his whereabouts.
During a recent sitting of the Assembly's Implementation Committee, members were informed that Kerich had travelled outside the country on official duty and would appear before the committee after returning.
In a letter sent to the committee last month, Acting County Secretary Godfrey Akumali said Kerich was in the United States of America on an official assignment.
Akumali requested the committee to postpone his appearance.
"We wish to inform you that the County Executive Committee Member is currently in the United States of America on official assignment. We kindly request that his appearance before the Committee be rescheduled," part of the letter from Akumali reads.
Although the committee agreed to give Kerich another chance to appear, members directed the county administration to provide evidence confirming that he had indeed travelled on official business.
Kerich also informed the court that he had travelled abroad for medical treatment.
His absence delayed Nairobi County's budget appropriation process, leaving the county yet to pass its budget for the current financial year.
Governor Sakaja later appointed Ibrahim Auma Nyangoya as the substantive Finance CEC to oversee the county's budget preparations.
Despite the court lifting the contempt orders, it remains unclear whether Kerich will return to the county executive.