High Court blocks payment of Sh6.2 billion linked to NYS 'air suppliers'

The High Court has declined to lift interim orders blocking the payment of more than Sh6.2 billion linked to the National Youth Service (NYS) ‘air suppliers’ scandal.

Justice Alexander Muasya Muteti yesterday extended conservatory orders issued earlier this month to January 15, 2026, restraining NYS from processing or paying claims amounting to Sh6,167,797,655.

However, the judge ordered the Ethics and Anti-Corruption Commission (EACC) to release over 200 disputed payment vouchers it is holding to the Accounting Officer of the National Youth Service by close of business on Wednesday December 24, 2025.

The documents are to be forwarded to the Pending Bills Verification Committee, whose mandate expires on December 31, 2025, strictly for verification purposes and not payment.

"For the avoidance of doubt, this court has not sanctioned any payment of the pending bills pending the hearing and determination of this suit. The accounting officer NYS is directed not to effect any payments pending the final hearing and determination of this Notice of Motion or until otherwise ordered by the court,” Justice Muteti ruled.

" The vouchers and payment documents shall be returned to the EACC CEO on or before January 14, 2026 by the Accounting officer, National Youth Service."

The dispute arises from a suit in which the EACC sued suppliers including businessman Ben Gethi Wangui and 15 others, seeking to stop claims and payments allegedly founded on fictitious vouchers for goods said to have been supplied to NYS between 2013 and 2015.

According to EACC, the claims stem from payment vouchers forwarded to the Commission in July 2022 by the then Cabinet Secretary for Public Service for forensic examination.

EACC told the court that its investigations established the vouchers were fraudulent and no goods had been supplied at the NYS as alleged, prompting it to file a civil recovery suit on December 5, 2025, alongside an application for injunctive orders.

On December 8, 2025, trial judge Lady Justice Lucy Njuguna granted interim orders restraining the suppliers and NYS from processing or paying the disputed amounts pending further directions.

The orders triggered an urgent application by Jimchar Enterprises Limited and Tison Limited, the 5th and 6th defendants, seeking to set aside the injunctions and compel the release of vouchers to the Pending Bills Verification Committee.

Through their lawyer, David Kirimi, the companies argued that the continued holding of the vouchers by EACC would lock them out of the verification process, given that the Pending Bills Verification Committee is set to wind up its work at the end of December.

"The failure to release the documents before the committee’s mandate lapses would cause irreparable prejudice," Kirimi stated.

The suppliers argued that a Multi-Agency Team (MAT), which included EACC representatives had previously vetted historical NYS pending bills and recommended payments of more than Sh5.3 billion, with only about Sh812 million flagged for further investigations.

They further cited advisories from the Attorney General dated March 16, 2020 and December 3, 2020, which recommended payment of verified pending bills following vetting.

EACC opposed the application, maintaining that releasing the vouchers would undermine the suit and potentially facilitate payment based on documents it considers fraudulent.

“The plaintiff contended that if the vouchers and payment documents are released, the suit will be rendered nugatory,” the judge noted.

The Commission also argued that it has statutory authority to retain the documents and that the expiry of the committee’s mandate did not justify their release.

In resolving the dispute, Justice Muteti held that verification of pending bills does not amount to payment and that releasing the documents under strict conditions would not prejudice EACC’s case.

“Verification of the pending bill is not akin to payment. The two processes are undertaken by different bodies,” he held.

He further observed that the vouchers are accountable documents that should ordinarily be in the custody of the NYS Accounting Officer and can be retrieved by EACC when required.

The judge directed that the matter be mentioned before Justice Lucy Njuguna on January 15, 2026 further directions on hearing of the main suit.