Nairobi County Assembly Moves to Cut Legal Costs Through Alternative Dispute Resolution

Nairobi County is set to overhaul how it handles legal disputes in a bid to curb ballooning legal fees and ease the burden of pending bills. On Tuesday, the Nairobi County Assembly passed a motion directing the County Executive to adopt alternative dispute resolution (ADR) mechanisms as a priority, making court litigation a last resort.

The motion, tabled by Karen Ward MCA Anthony Maragu, requires the Office of the County Attorney to spearhead the reforms and develop a framework for ADR within 60 days. The directive mandates the establishment of a structured negotiation system that incorporates mediation, conciliation, arbitration, and tribunals in line with Article 159(2)(c) of the Constitution. In addition, the Attorney’s office will be expected to draft a comprehensive county ADR policy to guide all future dispute resolutions involving the county and its agencies.

During debate on the motion, MCAs expressed alarm over the county’s escalating legal liabilities, noting that billions of shillings are tied up in legal fees and court awards. Maragu said more than Sh20 billion is currently owed to legal firms, warning that the mounting bills are diverting resources away from essential services and development projects.

“Legal fees continue to form the biggest portion of all the pending bills, with more than 20 billion now owed to legal firms,” he stated. “This is something that needs to be tamed.”

Several ward representatives also questioned the integrity of the county’s legal processes, alleging collusion between private law firms and officials within the county’s legal department. They argued that some cases appear to have been deliberately initiated to generate legal fees at the expense of taxpayers.

The assembly has now urged the Law Society of Kenya and the Senate to step in and shield counties from what it termed as excessive and exploitative legal charges.

The Auditor General has repeatedly flagged legal liabilities as a persistent financial challenge for county governments, with Nairobi leading the list of defaulters. The latest push for ADR is being seen as a strategic attempt to reduce unnecessary litigation, free up funds for development, and restore fiscal discipline in Kenya’s capital.