Court of Appeal Halts Shs147.7bn Dei Loan Case After Magoola Challenges Audit

Kenya’s Court of Appeal has issued an interim order suspending the enforcement of a Shs147.7 billion loan dispute involving the Development Equity Initiative (DEI). The decision follows a petition by former Deputy Governor John Magoola, who alleges irregularities in the audit that underpins the loan claim. Magoola argues that the audit was conducted without due process and contains material misstatements that could prejudice his defense. The court’s halt means that any further legal action on the loan will be stayed pending a full hearing on the audit’s validity. Legal analysts say the ruling underscores the importance of transparent financial oversight in public‑private partnerships and could set a precedent for future audit challenges in Kenya.

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