Government institutions are facing renewed scrutiny over rising legal expenses linked to delayed settlement of court awards, with lawmakers warning that continued inaction is driving billions of shillings in avoidable costs borne by taxpayers.
The Public Accounts Committee, led by Tindi Mwale (Butere), expressed concern that State departments are allowing court awards to accumulate heavy interest due to failure to settle them on time. The Committee was reviewing the Auditor-General’s report for the 2023/2024 financial year covering the State Department for Livestock Development when the issue came up.
Principal Secretary for Livestock Jonathan Mueke appeared before the Committee together with senior officials from the department to respond to audit queries. Lawmakers were told that one of the key concerns involved a court award whose value had grown due to delayed payment, attracting significant interest costs.
The Auditor-General’s report showed that the liability, which originated from a court award initially valued at Sh5.2 billion, had been negotiated down to Sh4 billion. However, despite the reduction, the amount has not been paid, even after a directive from the Attorney-General in 2018 instructing that it be settled.
The report further indicated that the unpaid amount has continued to attract interest, pushing the financial burden higher. This was cited as an example of avoidable legal costs resulting from delayed action by government agencies.
During the session, PS Mueke informed the Committee that the State Department had repeatedly requested budget allocations to clear the award but had not received funding. The explanation, however, did not ease concerns from lawmakers who questioned why the matter had remained unresolved for years.
Members of the Committee, including Nabii Nabwera (Lugari), Mary Emaase (Teso South), Edwin Mugo (Mathioya), and Marianne Kitany (Aldai), argued that early compliance with court directives would have prevented the accumulation of unnecessary costs. They said delays in settling such obligations expose taxpayers to escalating liabilities.
Similar concerns were echoed by Adow Mohamed (Wajir South), Naisula Lesuuda (Samburu West), and Yakub Kuno (Bura), who noted that prolonged delays in settling court awards place an unfair burden on the public, who ultimately shoulder the cost.
In response to the growing concern, the Committee directed that both the Cabinet Secretary for the National Treasury and the Attorney-General be summoned to clarify why funds have not been released to settle the award and to explain the broader challenge of pending legal obligations across government.
“The issue of pending court awards and accruing penalties cuts across several State departments. As a Committee, we want to hear what measures are being put in place to protect taxpayers’ money,” said Hon. Mwale