Charles Kerich: Contempt Arrest Reactivated After Payment Default

• Former Nairobi County Finance Executive Charles Kerich faces imminent arrest and a three-month jail term.
• This follows his failure to meet an October 15 deadline for a Sh36.7 million payment.
• The payment was part of a Sh106.7 million legal fees settlement with Kwengu & Company Advocates.
• His original three-month jail sentence for contempt, issued by Justice Francis Gikonyo, has been automatically revived.
• Lawyers for Kwengu & Company Advocates have formally requested the Inspector-General of Police to execute the committal order.

The default on this payment automatically revokes the previous reprieve, making the former Nairobi County Finance Executive liable for immediate imprisonment without requiring any further court intervention.

Former Nairobi County Finance Executive Charles Kerich is once again facing the prospect of arrest and a three-month jail sentence. This development stems from his failure to meet a critical payment deadline of October 15, involving an instalment of Sh36.7 million. This missed payment is part of a larger Sh106.7 million legal fees dispute, and its default has automatically reactivated a previous committal order for imprisonment that Kerich had temporarily avoided.

Following the non-payment, legal representatives for Kwengu & Company Advocates have formally communicated with Inspector-General of Police Douglas Kanja. Their letter explicitly demands that law enforcement authorities prepare to apprehend Kerich and commit him to prison. The lawyers assert that the conditional reprieve granted to Kerich in July has now expired due to his non-compliance with the agreed-upon payment schedule, leaving no room for further delay or negotiation.

The current predicament for Charles Kerich originates from a protracted legal battle over unpaid legal fees owed by Nairobi County to Kwengu & Company Advocates, totaling Sh106,736,841.83. This debt arose from a dispute involving Foton East Africa Limited, where the county was ordered to remit the funds. Justice Francis Gikonyo, presiding over the matter, found Kerich in contempt of court on October 9, 2025, after determining that previous payment orders had been disregarded.

Subsequently, on May 19, 2026, Justice Gikonyo imposed a three-month prison sentence on Kerich for this contempt, directing the Officer Commanding Central Police Station to execute the committal order. Kerich managed to secure a temporary stay of this order through a court-approved settlement on July 16. Under the terms of this agreement, signed on July 8, Kerich made an initial payment of Sh30 million, with the remaining Sh76,736,841.83 to be paid in two further instalments: Sh36,736,841 by October 15 and a final Sh40 million by December 15. The suspension of the committal order was explicitly conditional on his strict adherence to this payment schedule. At the time, Justice Gikonyo noted the court was "satisfied that he has demonstrated remorse and willingness to comply with its orders."

The critical aspect of this case lies in the automatic nature of the penalty revival. Clause 7 of the settlement agreement stipulated that if any payment was not received, the stay on the committal order would lapse automatically, requiring no further court order for its enforcement. This means that the missed October 15 payment for Sh36.7 million immediately rendered Charles Kerich subject to the original three-month jail sentence, highlighting the strict enforcement of court-approved settlement terms in Kenya.

This development underscores the serious implications for individuals, particularly those in public office, who default on court-mandated financial obligations. The lawyers for Kwengu & Company Advocates have made it clear they will not grant any further indulgence or extension of time, with the matter scheduled to be brought before the court on October 29. The default on this payment automatically revokes the previous reprieve, making the former Nairobi County Finance Executive liable for immediate imprisonment without requiring any further court intervention. Kerich's return to City Hall, where he attended a County Executive Committee meeting on July 21 shortly after his initial reprieve, now faces significant disruption as the committal order enforcement looms.

Lawyers should advise clients on the strict enforcement of court-approved settlement terms, particularly regarding contempt orders, as failure to meet payment deadlines can lead to the automatic revival of severe penalties like imprisonment for individuals, even those in public office. Compliance officers in public entities must ensure timely adherence to such orders to prevent personal liability for executives.

Source: Original reporting via The Standard