COUNTIES

Court Rejects Nairobi County Bid to Reopen Sh311 Million Debt Case

Nairobi City County has suffered a legal setback after the High Court rejected its attempt to reopen a case involving a Sh311.4 million debt owed to technology firm Technobrain (Kenya) Limited.

Nairobi City County has suffered a legal setback after the High Court rejected its attempt to reopen a case involving a Sh311.4 million debt owed to technology firm Technobrain (Kenya) Limited.

In a ruling delivered on October 23, 2026, Justice William Musyoka dismissed the county government’s application to review a judgment issued on July 24, 2026, ordering it to settle the debt. The court also directed the county to pay the company’s legal costs.

The county had filed the application on August 20, seeking to overturn or vary the earlier judgment and have the court consider payments it said had already been made towards the outstanding amount.

However, the judge ruled that the High Court lacked jurisdiction to review its final decision in the judicial review proceedings, advising that any challenge should be pursued through an appeal.

County Cites Previous Payments

In its application, the county argued that the judgment had failed to account for payments totalling Sh142.9 million, including Sh7.08 million remitted to the Kenya Revenue Authority (KRA) on behalf of Technobrain.

The county maintained that the tax payment should have been considered when determining the amount payable to the technology firm.

It also challenged the naming of a county office in the proceedings, arguing that the correct designation should have been the Chief Officer for Information Communication and Technology and E-Government rather than the Chief Officer for Mobility and ICT Infrastructure.

The judge rejected these arguments, noting that the county had an opportunity to raise the issues during the original proceedings but failed to do so.

Court Faults County for Failing to Respond

Justice Musyoka observed that the county had been served with court documents and had appointed a lawyer to represent it in April 2026.

Despite attending several court sessions, the county did not file a response to Technobrain’s application before the judgment was delivered.

The judge said the court could not be faulted for failing to consider payments and other issues that had not been presented during the original proceedings.

He also ruled that the information the county sought to introduce was not new, since the relevant records dated back to 2020 and 2023.

Five-Year Settlement Agreement

The dispute arose from an agreement between Nairobi County and Technobrain, which reached a settlement in March 2023 over a debt of Sh311,429,979.

Under the agreement, the amount was to be paid over five years, with the arrangement subsequently becoming the subject of court proceedings.

Technobrain opposed the county’s application, arguing that the High Court could not reopen a final judgment in judicial review proceedings and that the county’s remedy lay with the Court of Appeal.

Justice Musyoka agreed with the company’s position and dismissed the application, leaving the earlier judgment in place.

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