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Court Rejects Ruto Appointment of 50 CASs

President William Ruto poses for a photo with 50 newly appointed CASs at State House on March 23, 2023.jpg
President William Ruto poses for a photo with 50 CASs he appointed at State House, Nairobi on March 23, 2023.
PCS

The High Court on Monday, July 3, ruled that President William Ruto’s appointment of 50 Chief Administrative Secretaries was unconstitutional.

The ruling was made by a three-judge bench including Justices Kanyi Kimondo, Hedwing Ong’udi and Visram Alnashir.

The three-judge bench further ruled that whereas there was public participation before the appointment of CASs, it was only limited to 23 CASs and not 50 as appointed by President William Ruto.

"There was no public participation in the appointment of the extra 27 CASs. The establishment of the extra 27 CAS positions is unconstitutional," Justice Ongudi ruled.

From left: High Court Justices Kanyi Kimondo, Hedwing Ong’udi and Visram Alnashir.
From left: High Court Justices Kanyi Kimondo, Hedwing Ong’udi and Visram Alnashir.
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The Judiciary of Kenya

"For the avoidance of doubt, the entire complement of 50 CASs is therefore unconstitutional," added Justice Kimondo

The High Court further faulted President William Ruto's administration for not subjecting the CASs upon selection by Public Service Commission (PSC) to vetting by the National Assembly.

The Court ruled that the role of CASs fell between a constitutional and state office hence there was need for a parliamentary vetting.

"CASs are for all purposes assistant Cabinet Secretaries and Principal Secretaries are relegated to reporting to CASs and CSs," the High Court ruled on the need for vetting in the National Assembly adding that the CASs were supposed to earn more than PSs.

The three-judge bench in their ruling also questioned the wisdom of having 50 assistants to CSs when the Kenyan Constitution limited the maximum number of CSs to 22.

"We do not think it was the intention of framers of our Constitution to have 50 CASs deputising 22 CASs," the High Court ruled.

While it was established that the position of CAS was advertised as required by law, PSC was faulted for not indicating the number of vacancies. 

On Friday, March 24, the Law Society of Kenya (LSK) and Katiba Institute sued President William Ruto and the Public Service Commission (PSC) for contravening the constitution.

The two bodies argued that by appointing 50 CASs, President Ruto violated Article 10 of the Constitution which provided for the creation of 23 positions.

Pending the determination of the case, High Court Lady Justice Hedwig Ong'udi barred the CASs from earning a salary, remuneration, and any benefit.

President William Ruto speaking during a strategic dialogue on the African Climate Action Summit held at the Global Centre on Adaptation in Rotterdam, The Netherlands on May 7, 2023
President William Ruto speaking during a strategic dialogue on the African Climate Action Summit held at the Global Centre on Adaptation in Rotterdam, The Netherlands on May 7, 2023.
PCS

Over 55 Dead as Trailer Rams Into PSVs in Londiani

A collage of an accident in Kericho on Friday June 30, 2023
A collage of an accident in Kericho on Friday, June 30, 2023
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Lazarus Bii

Update: 11:02 PM: President William Ruto condoles with the families of Londiani Accident victims.

"The country mourns with the families who have lost loved ones in a horrific road accident in Londiani, Kericho County. It is distressing that some of the fatalities are young people with a promising future and business people who were on their daily chores.

"We pray for the speedy recovery of all survivors; you are in our thoughts. We urge motorists to be extra cautious on roads, especially now when we are experiencing heavy rainfall," Ruto rallied the nation.


Motorists and residents near a road accident in Kericho on Friday June 30, 2023
Motorists and residents near a road accident in Kericho on Friday, June 30, 2023
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Boniface Cheruiyot

Update: 10:30 PM: Transport CS Kipchumba Murkomen says rescue efforts are underway involving officers from various agencies of national and county governments, elected leaders,  the Red Cross and other well wishers. 

"More information will be shared with the public. The rescue efforts will be followed by investigations to determine the cause of the crash. 

"I take this opportunity to condole with the families, friends of the bereaved, and wish quick recovery to those injured following this tragic incident," Murkomen eulogised. 


Update: 10:00 PM: Reports indicate that the death toll in the Londiani Accident is at 55 and projected to rise.


Several people were feared dead on Friday, June 30, in a multi-car crash at the Londiani Junction along the Kericho-Nakuru highway. 

According to eyewitnesses, a trailer rammed into Public Service Vehicles (PSV) after losing control before rolling into a nearby market, thus claiming more lives. 

The nearly 7 matatus had parked by the roadside at a pick-up stage which also hosts boda boda operators. 

While responding to the incident, Kericho Governor Erick Mutai Kipkoech sent his condolence message to the victims' families, urging the area residents to remain calm. 

"We have mobilised our ambulances and asked all our health facilities to be alert. May God give us grace and strength on this difficult time," Mutai assured that the situation was under control. 

On the other hand, Kericho Women Representative Beatrice Kemei encouraged emergency response teams in the country to fast-track the rescue operation.

"I send my commiserations to families who have lost their loved ones and healing prayers to those injured," Kemei, who was overwhelmed by the incident, stated. 

Emergency service providers who rushed to the scene assessed the victims and administered first aid before rushing them to nearby hospitals. 

Meanwhile, due to the severity of the crash, some of the victims were thrown into an adjacent ditch, piling onto each other.

By the time of publishing this article, the number of those injured and dead was yet to be disclosed. Reports stated that police were deployed to cordon the area and man traffic on the busy highway. 

Data released on Thursday, June 29, by the National Transport and Safety Authority (NTSA) revealed that 2,124 fatalities were recorded between January and June 2023.

The deaths recorded in the first half of 2023 dropped compared to the same period in 2022, where only 2,261 cases were reported.

NTSA reported that more pedestrians led with 729 cases recorded, followed by motorcyclists (561), passengers (403), pillion passengers (196), drivers (189), and pedal cyclists (46).

A photo of NTSA and police officers conducting an operation in Nairobi County.
A photo of NTSA and police officers conducting an operation in Nairobi County on March 20, 2023.
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NTSA

Court Suspends Finance Act, 2023

Ndung'u
Treasury Cabinet Secretary Njuguna and Omtatah
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Treasury/Okiya Omtatah

High Court Judge Mugure Thande, on Friday, June 30, issued conservatory orders suspending the implementation of the Finance Act, 2023. 

The judge ruled in response to a petition filed by Busia Senator Okiya Omtatah, which urged the court to suspend the tax hikes pending the hearing and determination of his application. 

Omtatah's request to bar Ruto from enacting the Finance Act 2023 was also granted. 

"I am satisfied that the Application meets the test for conservatory orders and I do grant prayers 2 and 3 of the Application until July, 5 when the matter is scheduled for mention for directions.

Busia Senator Okiya Omtatah at the Supreme Court
Busia Senator Okiya Omtatah at the Supreme Court on Tuesday, September 5, 2022.
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Okiya Omtatah

"Pending the hearing and determination of the application and/or the Petition, the Honourable Court be pleased to issue a conservatory order suspending the Finance Act, 2023," read part of the ruling. 

The court, therefore, issued an interim order prohibiting the respondents and interested parties or their agents howsoever acting from giving effect to the Finance Act, 2023.

Justice Thande ordered the petitioner to serve all parties including Treasury CS Njuguna Ndung'u before end of the day, Friday, June 30, 2023. 

She also ordered the respondents to file their responses by Tuesday, July 4, after which the High Court will list a hearing date. 

The petition challenged the constitutionality of several provisions of the Finance Act, 2023, including the increase in the Value Added Tax (VAT) on petroleum products from 8 to 16 per cent, the 1.5 per cent Housing Levy, the introduction of a new tax on digital content creation, and the changes to the tax regime for mobile money operators.

Speaking to Kenyans.co.ke, the Busia Senator argued that the provisions of the Finance Act violated the right to equality, the right to property, and the right to a fair hearing. He also stated that the provisions were arbitrary and unreasonable.

“Forcing employees to contribute an amount of money based on the applicable blanket deductible percentage without consideration of their existing contractual obligations on their salaries is not reasonable,” Omtatah stated. 

Omtatah stated that the suspension of the implementation of the Finance Act is a significant victory for those involved in activism. 

He noted that it was also a victory for Kenyan taxpayers, who will now be spared the increase in VAT and the other changes to the tax regime.

Addressing the media immediately after the ruling, the Chairman of the Finance and National Planning Committee in the National Assembly, Kuria Kimani, assured that the conservatory orders will remain in place until the case is heard and determined. 

Kuria who is also the MP for Molo noted that the suspension of the implementation of the Finance Act is a major setback for the government, and it is a sign that some people did not mean well for the government. 

President William Ruto (left) shaking hands with Busia Senator Okiya Omtatah (right) during a Thanksgiving service in Busia on May 25, 2023.
President William Ruto (left) shaking hands with Busia Senator Okiya Omtatah (right) during a Thanksgiving service in Busia on May 25, 2023.
PCS

Ruto Rejects 14% Salary Rise, Issues Order to SRC

President Ruto (second right), DP Gachagua (far left), Prime CS Musalia Mudavadi (far right) and Aaron Cheruiyot at State House for the Kenya Kwanza Parliamentary Group Meeting on May 23, 2023.
President Ruto (second right), DP Gachagua (far left), Prime CS Musalia Mudavadi (far right) and Aaron Cheruiyot at State House for the Kenya Kwanza Parliamentary Group Meeting on May 23, 2023.
PCS

President William Ruto, on Friday, June 30, halted plans by the Salaries and Remuneration Commission (SRC) to increase his salary and that of his Deputy Rigathi Gachagua.

Speaking at the Kenyatta International Convention Center (KICC), Ruto directed SRC to develop an internationally recognised system to reduce the gap between civil servants' salaries.

"I have told SRC that there is an internationally accepted formula called compression formula. Until they come back to me and say they have met that formula, our salary increment will wait."

"But for the other people, the state officers, myself, my deputy, ministers, PSs, MPs and others. That salary would remain the way it is. Let it remain the way it is until SRC gives us international best practices because we need to reduce the gap," Ruto ordered. 

President William Ruto speaking at Limuru Girls Secondary School on May 20, 2023.
President William Ruto speaking at Limuru Girls Secondary School on May 20, 2023.
PCS

Defending the move, Ruto announced that it will bring uniformity in the public service addressing cases where some civil servants earn ten times more than others.

Ruto expressed concerns over the current public service remuneration system indicating that some university vice-chancellors and parastatal managing directors were earning more than him.

The Head of State thus directed SRC to explain in a detailed report what qualifies them for such high pay.

SRC had proposed increasing Ruto's salary by Ksh206,260 for the financial year 2024/25. In the proposal, Ruto was poised to earn Ksh1,650,000, up from the current Ksh1,443,750.

His deputy was expected to earn Ksh1,402,500 from his current Ksh1,367,438 monthly pay.

In the proposal, Chief Justice Martha Koome was expected to be among the top earners in the country with her salary hitting Ksh1,403,942 starting in 2024.

Deputy Chief Justice Philomena Mwilu's salary was set to hit Ksh1,304,185 per month minus allowances  in 2024.

Ruto, however, defended salary increments for other civil servants, arguing that it will cushion them from economic downtime.

"Salaries of other civil servants can be adjusted beginning tomorrow (Saturday July 1). So our teachers, military officers and people working in government services, we have agreed that your salaries will be adjusted between 7 and 10 per cent from tomorrow," the Head of State announced.

Deputy President Rigathi Gachagua speaking in Elgeyo Marakwet County on Friday June 23, 2023
Deputy President Rigathi Gachagua speaking in Elgeyo Marakwet County on Friday, June 23, 2023
DPPS

More to follow... 

EPRA Increases Fuel Prices by Ksh13

A petrol station attendant fueling a vehicle
A petrol station attendant fueling a vehicle in April 2020.
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EPRA

The Energy and Petroleum Regulatory Authority (EPRA) on Friday, 30, announced new fuel prices for July 2023 despite a High Court order issued by Justice Mugure Thande suspending the Finance Act, 2023.

EPRA's upward revision of prices was necessitated by the doubling of the Value Added Tax (VAT) on fuel from eight per cent to sixteen per cent. 

In Nairobi, the new prices will retail as follows; super petrol Ksh195.53 per litre, diesel Ksh179.67 and kerosene Ksh173.44 per litre.

"Pursuant to the Finance Act, 2023, the Value Added Tax (VAT) on Super Petrol, Diesel and Kerosene have been revised from 8 to 16 per cent effective July 1, 2023. 

EPRA Director-General Daniel Kiptoo (right) addresses the Public and Investment Committee on Commercial Affairs and Energy on April 12, 2023.
EPRA Director-General Daniel Kiptoo (right) addresses the Public Investments Committee on Commercial Affairs and Energy on April 12, 2023.
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National Assembly

"Accordingly, the Energy Petroleum Regulatory Authority (EPRA) has recalculated the maximum pump prices that will be in force from July 1 to July 14, 2023, taking into account VAT at 16 per cent," read part of the statement by EPRA. 

As a result, EPRA Director-General Daniel Kiptoo Bargoria explained that the changes in the maximum allowed petroleum pump prices in Nairobi, including Super Petrol, Diesel and Kerosene, increased by Ksh13.49 per litre, Ksh12.39 per litre and Ksh11.96 per litre respectively.

According to EPRA, the Petroleum Pricing Regulations aim to cap the retail prices of petroleum products already in the country, ensure importation and other prudently incurred costs are recovered, and reasonable prices pushed to consumers. 

"EPRA wishes to assure the public of its continued commitment to the observance of fair competition and protection of the interests of both consumers and investors in the energy and petroleum sectors," the statement by EPRA read in part.  

In Mombasa, super petrol will retail at Ksh192.48, diesel at Ksh176.63, and kerosene will be selling at Ksh170.40 per litre.  

At the same time, major cities, including Nakuru and Kisumu, registered an increase in the price of petroleum products per litre. In Nakuru, a litre of super petrol will cost Ksh194.60, diesel at Ksh179.14 and kerosene - at Ksh172.93. 

Meanwhile, in Kisumu, a litre of super petrol will retail at Ksh195.34, diesel - at Ksh179.89 and kerosene at Ksh173.68.  

In other areas such as Laisamis, Merille and Korr in Marsabit County, the prices for super petrol hit over Ksh200 per litre. 

Fuel tankers lined up to collect petroluem products for distribution in various parts of the country
Fuel tankers lined up to collect petroleum products for distribution in various parts of the country.
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Bizna Kenya

Senate Saves Siaya Deputy Governor William Oduol From Impeachment

William Oduol
Siaya County Deputy Governor William Oduol (Right) sharing greetings with Parliament staff on Thursday, June 22, 2023.
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Parliament of Kenya

Impeachment motion against Siaya County Deputy Governor William Oduol on Monday, June 26, fell flat at the Senate after Members of Parliament rejected a committee report that recommended his removal from office.

In a voting exercise carried out during a special sitting to consider a report of the special Ad Hoc Committee, the majority of the Senators observed that the alleged offences did not warrant impeachment of the deputy governor.

"The net effect of this vote is done pursuant to Article 181 of the Constitution. It is important to state that the Senate has failed to impeach the Siaya Deputy Governor William Oduol, and he will continue to hold office," Senate Speaker Amason Kingi ruled.

The committee had found the DG guilty of gross violation of the Constitution and other laws as well as misleading the public by giving false information. 

A photo of deputy governor William Oduol taken in October 2012.
A photo of Siaya County deputy governor William Oduol taken in October 2012.
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William Oduol

Twenty-seven senators, however, dismissed the charges against Oduol while only 16 approved. 36 lawmakers were present in the chambers while 3 voted virtually.

The committee had also dismissed two counts of misappropriation of funds and abuse of his office as the deputy governor of Siaya County.

The recommendations were made by members of the Special Committee including, Sentors William Kisang of Elgeyo Marakwet County (Chairperson), Betty Batuli Montet (Vice Chairperson), Abass Mohamed of Wajir County, Mwenda Gataya Mo Fire of Tharaka Nithi County.

Other members of the special committee included Tabitha Mutinda, Raphael Chimera Mwinzagu, Miraj Abdullahi Abdulrahman, Nyamira County Senator Erick Okong’o Omogeni, Catherine Mumma, Daniel Maanzo of Makueni County and Kisii County Senator Richard Onyonka.

"The committee notes that the Deputy Governor admitted to have interfered with the procurement process in Siaya County," committee chairman Sentors William Kisang of Elgeyo Marakwet County stated.

In the Senate plenary, Azimio la Umoja Coalition MPs seemed to side with Siaya County MCAs while Kenya Kwanza Legistarors summarily dismissed the allegations. 

The Senate Special Committee on the proposed removal from office by the impeachment of the Siaya Deputy Governor William Oduol concluded its hearings on Thursday, June 22, and retreated to write the report that was tabled in the House during the special sitting.

The County Assembly and the Deputy Governor of Siaya County submitted their evidence on Wednesday 21 and Thursday 22 respectively.

Siaya Governor James Orengo and his deputy William Oduol addressing the media on November 2022.
Siaya Governor James Orengo and his deputy William Oduol addressing the media on November 2022.
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James Orengo

Kindiki Declares Wednesday Public Holiday

Kindiki IDPs
Interior Cabinet Secretary Kithure Kindiki before the National Assembly’s Departmental Committee on Administration and Internal Security on June 20, 2023.
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Kithure Kindiki

Interior CS Kithure Kindiki declared Wednesday, June 28, as a public holiday to mark Eid-Ul-Adha (Idd-Ul-Azha).

In a Special Gazette Notice dated Monday, June 26, the CS noted that the declaration is in line with the Public Holidays Act.

"It is notified for the general information of the public that in exercise of the powers conferred by section 2 (2) and part II of the schedule, as read with section 3 of the Public Holidays Act, the Cabinet Secretary for Interior and National Administration declares that Wednesday, June 28, 2023, shall be a public holiday to mark Eid-Ul-Adha (Idd-Ul-Azha)," the statement read in part.

Defence CS Aden Duale lauded Kindiki for acknowledging the holiday and subsequent proclamation.

Defence Cabinet Secretary alongside military officers appearing before senators on May 5, 2023.
Defence Cabinet Secretary alongside military officers appearing before senators on May 5, 2023.
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KDF

"My sincere appreciation and gratitude to the Government, through my colleague CS - Interior, Prof Kindiki Kithure for the recognition and proclamation of June 28, 2023, as a public holiday to mark Eid-Ul-Adha," he stated. 

According to section 3 of the Public Holidays Act, dates determined in accordance with the Islamic faith, are to be declared public holidays. 

Eid-Ul-Adha

Known as the festival of sacrifice, the holiday is celebrated to honour the devotion of Abraham and Ishmael according to the Islamic faith. The festival marks the climax of the Pilgrimage - the fifth pillar of Islam. 

In the Islamic calendar, there are two key celebration festivals; Eid-ul-Fitr which symbolises the completion of the Holy Month of Ramadan and Eid-ul-Adha which follows the completion of the annual Hajj pilgrimage. 

Eid-ul-Fitr was celebrated on April 21, 2023, following a special Gazette Notice issued by the Ministry of Interior.

The Islamic culture believes that it was during the month of Ramadhan that the Qur'an text was revealed to the Prophet Muhammad.

During the special occasion, believers share food and other gifts with the less fortunate in various communities. They also convene in various places of worship to break the fast.

President William Ruto joins Muslim Community for Iftar dinner at KICC on April 11, 2023.
President William Ruto joins Muslim Community for the Iftar dinner at KICC on April 11, 2023.
PCS

MPs Double Fuel VAT to 16%

A photo collage of President William Ruto speaking during the launch of a project in Nyandarua County on April 6. 2023 (left) and a petrol attendant about to refill a car at a petrol station on March 24, 2022 (right).
A photo collage of President William Ruto speaking during the launch of a project in Nyandarua County on April 6. 2023 (left) and a petrol attendant about to refill a car at a petrol station on March 24, 2022 (right).
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PCS / ma3Route

Azimio la Umoja's bid to block President William Ruto from approving the 16 per cent increment on fuel products suffered a setback after Parliament voted to approve the increase.

This was after the push to amend the clause on Finance Bill 2023 failed to sail through during the voting exercise held on Wednesday, June 21, at the National Assembly.

184 voted to support the proposal while only 88 opposed it.

"A total of 272 members took their votes. Those who voted in favour were 184 and those who opposed were 88," Gilgil MP Martha Wangari, who presided over the session, announced after the conclusion of the vote.

Below is the video:

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The approval came after a spirited Parliamentary debate in which Azimio pushed for the VAT to be retained at 8 per cent, while Kenya supported the increment arguing that it would provide enough funds for the state to stabilise the economy.

National Assembly Finance and Planning Committee chairman, Kuria Kimani, defended the increment noting that it will help the Kenya Kwanza administration do away with the costly subsidy programme.

Azimio team led by the leader of the minority, Opiyo Wandayi, argued that increasing VAT to 16 per cent will raise the cost of living.

"If there's one thing that is going to increase the cost of living in all aspects, it is this proposed increment on the VAT fuel," Wandayi insisted.

What Ruto Had Said

President Ruto had earlier defended the increase estimating that it will help his administration raise Ksh50 billion - money he insisted will be channeled towards road projects countrywide.

"This 8 per cent we are adding will give us about 50 billion shillings and begin to deal with the problem of roads in our country but to balance it out, I have removed on the same fuel, 3.5 per cent road development levy, 2 per cent of Import Declaration Fee (IDF), and 8 per cent VAT on gas,” Ruto stated during a joint media interview at State House.

Despite his explanation, players in the fuel sector warned that the increment would make the product hit Ksh200 affecting transport and other sectors of the economy.

Public service vehicle operators also announced that the increment will compel them to increase fare charges.

In the fuel prices announced by Energy Petroleum Regulatory Authority (EPRA) on Wednesday, June 14, super petrol was reduced by Ksh0.66 to retail at Ksh182.04.

Diesel, on the other hand, was reduced by Ksh1.12 to retail at Ksh167.28

Undated photo of a person fueling a car
Photo of a person fueling a car at a petrol station in August 2018.
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EPRA

Ruto Appoints Atwoli to Team Selecting New DPP

From Left: COTU SG Francis Atwoli, President William Ruto and Labour CS Florence Bore in Geneva on Thursday June 15, 2023
From Left: COTU SG Francis Atwoli, President William Ruto, and Labour CS Florence Bore in Geneva on Thursday, June 15, 2023
PCS

President William Ruto, on Wednesday, June 21, appointed Central Organization of Trade Unions (COTU) Secretary General Francis Atwoli to a team of seven tasked with picking the next Director of Public Prosecutions (DPP).

Also appointed to the selection panel was Ethics and Anti-Corruption Commission (EACC) boss Twalib Abdallah Mbarak.

Others were Mary Adhiambo Maungu, Roseline Odede, Richard Onsongo Bush Obwo and Mary Kimonye. 

Solicitor General Shadrack Mose was also appointed to the team of seven.

President William Ruto with incoming Solicitor General Shadrack Mose (far left), Attorney General Justin Muturi, and outgoing Solicitor General Ken Ogeto at State House on March 20, 2023.
President William Ruto with incoming Solicitor General Shadrack Mose (far left), Attorney General Justin Muturi, and former Solicitor General Ken Ogeto at State House on March 20, 2023.
State House

"In exercise of the powers conferred by section 8 (1) of the Office of the Director of Public Prosecutions Act, 2013, L, William Samoei Ruto, President of the Republic of Kenya and Commander-in-Chief of the Defence Forces, appoint the seven to be members of the Selection Panel for the Selection of Nominees for
appointment as the Director of Public Prosecutions," read the statement in part.

However, the timelines for the selection of the new DPP were not issued.

Atwoli and the other six-panel members will shortlist, interview applicants and submit the names of suitable candidates to Ruto.

Ruto will then nominate one individual and submit the name to the National Assembly for vetting and approval

ODPP is mandated by Article 157 of the Constitution to prosecute criminal matters, direct investigation and guide the conduct of criminal investigations, monitor, train, appoint and gazette public prosecutors and facilitate victims of crime and witnesses during prosecution. 

Former DPP Noordin Haji assumed office as the Director General of the National Intelligence Service (NIS) on June 14, succeeding Major General Philip Kameru, who had served since 2020. 

President William Ruto, who witnessed Haji's inauguration, assured the new NIS boss of government support in the execution of his duties. 

"Congratulations on your appointment, Mr Noordin Haji. You have my support, and I’m looking forward to working with you as you serve the people of Kenya. 

“As individuals, we are here, and tomorrow there will be others, and the best we can do is not to personalise the institution but make it better to serve the country beyond us," Ruto stated. 

National Intelligence Service (NIS) Director General Noordin Haji taking an oath of office on June 14, 2023.
National Intelligence Service (NIS) Director General Noordin Haji taking oath of office on June 14, 2023.
PCS

Reprieve for Uhuru as Supreme Court Nullifies Ksh500 Billion SGR Verdict

Former President Uhuru Kenyatta flags off the Nairobi-Suswa SGR line on October 19, 2019.
Former President Uhuru Kenyatta flags off the Nairobi-Suswa SGR line on October 19, 2019.
PSCU

The Supreme Court, on Friday, June 16, nullified the Court of Appeal ruling, which had determined that procurement regulations were violated in the Ksh500 billion Standard Gauge Railway (SGR) agreement between Kenya and China.

The 5-judge bench comprising Deputy Chief Justice, Philomena Mwilu and justices, Mohamed Ibrahim, Smokin Wanjala, Njoki Ndung'u, and William Ouko declared that the procurement process for the Standard Gauge Railway project adhered to the provisions outlined in Article 227 of the Constitution. 

In their ruling, the judges also observed that the procurement was undertaken as a government-to-government contract and hence exempt from the provisions of the Public Procurement Disposal Act, 2005. 

A Standard Gauge Railway (SGR) train while in transit.
A Standard Gauge Railway (SGR) train while in transit on June 18, 2021.
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Kenya Railways

"In addition, the SGR project was subject to interrogation before Parliament in two committees, and none of the respondents opted to be involved. The said parliamentary process, which is open to the public, cleared the projects. Under our constitutional design, the people have the power to exercise their oversight power through elected representatives who are domiciled in Parliament. Whether a citizen agrees with or was satisfied with what was undertaken is a matter of conjecture, provided that the laid-out procedure was followed.

"In the premises, we respectfully disagree with the appellate court and hold that the procurement process for the SGR project met the requirements of Article 227 of the Constitution as read together with the provisions of the PPDA, 2005," the verdict by DCJ Mwilu read. 

The late President Mwai Kibaki initiated the SGR deal with contracts approved by President (Rtd) Uhuru Kenyatta's administration. 

Busia senator and activist, Okiya Omtatah, filed a petition at the High Court challenging the procurement process for the construction of the SGR and the resultant contracts awarded to the China Road and Bridge Corporation (CRBC).

The Law Society of Kenya also asked the High Court to bar CRBC from constructing SGR. The petitions filed in February and May 2014, argued that there was a lack of due diligence on the part of the government.

Uhuru's administration faced criticism for not conducting an independent feasibility study and failing to evaluate the project's design prior to selecting a contractor and assigning the project to CRBC. This was particularly concerning given the reported blacklisting of the company by the World Bank in January 2009.

According to the activists, single sourcing or direct procurement for a mega project such as the SGR was illegal. They thus argued that the government should have issued a restricted tender inviting other Chinese firms with the requisite qualifications to bid for the contract. 

The High Court, in a judgment issued by Justice Isaac Lenaola (now Supreme Court judge), dismissed the consolidated petitions in November 2014 on the basis of technicalities. 

Omtatah and LSK moved to the Court of Appeal to seek legal redress. The appellate court's objective was to ascertain whether there were flaws in the procurement laws pertaining to the case.

The Court of Appeal upheld the High Court’s decision save for setting aside the finding that the procurement of the SGR project was exempt from the provisions of The Public Procurement and Asset Disposal Act, 2005. 

It also ruled that Kenya Railways Corporation failed to comply with, and violated the provisions of Article 227 (1) of the Constitution, Sections 6(1) and 29 of the PPDA, 2005, in procuring the SGR project.

Kenya Railways thus proceeded to the Supreme Court, which overturned the ruling. 

Busia Senator Okiya Omtatah (left) and an SGR train in transit.
Busia Senator Okiya Omtatah (left) and an SGR train in transit.
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Okiya Omtatah/KRS