Michael Nyachae: Civil Group Sues to Stop Ruto’s Appointee from Leading Development Bank

Michael Nyachae: Civil Group Sues to Stop Ruto’s Appointee from Leading Development Bank

  • Operation Linda Jamii moved to court to challenge President William Ruto’s appointment of Michael Nyachae to head the Development Bank of Kenya
  • The civil group alleges that Nyachae’s appointment violated constitutional values and lacked transparency and competition
  • Key government institutions have been named in the petition, with claims that they failed to uphold due process during the appointment

TUKO.co.ke journalist Harry Ivan Mboto has over three years of experience reporting on politics and current affairs in Kenya

Storm is brewing over Michael Nyachae’s appointment as Development Bank of Kenya (DBK) chair by President William Ruto.

Michael Nyachae
Michael Nyachae was appointed by President William Ruto to lead the Development Bank of Kenya. Photos: Michael Nyachae, William Ruto.
Source: UGC

Civil society group Operation Linda Jamii has taken legal action to stop the appointment, claiming the process flouted constitutional requirements.

The group filed a petition at the High Court’s Constitutional and Human Rights Division in Nairobi, seeking to have the appointment nullified on grounds of illegality and procedural flaws.

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Ruto appointed Nyachae to the position in 2023, but according to the petitioners, the process failed to uphold key values such as meritocracy, transparency, and integrity.

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What's wrong with Nyachae's appointment to Development Bank?

They argued that the appointment did not follow a competitive process, as demanded by Articles 10, 73, and 232 of the Constitution.

The petition also invoked the Leadership and Integrity Act and the Public Appointments (Parliamentary Approval) Act, which require thorough vetting and public accountability.

Operation Linda Jamii maintained that the Development Bank qualifies as a public institution under Article 260 of the Constitution and, as such, leadership appointments must reflect the spirit of Chapter Six, which sets standards for ethical and effective leadership.

"At the time of his impugned appointment, he had a negative listing on the Credit Reference Bureau (CRB)…It thus goes without saying that the appointment contravened the law and the constitution, specifically the ethics and integrity principles," the affidavit seen by TUKO.co.ke read in part.

The group believes Nyachae’s selection sidestepped these legal expectations.

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Among the six respondents listed in the petition are the Central Bank of Kenya, the Industrial and Commercial Development Corporation (ICDC), the Public Service Commission, the Development Bank of Kenya, the Office of the Attorney General, and the National Assembly.

The petition accused Parliament and the attorney general of failing to provide proper oversight, allowing the process to proceed without the necessary scrutiny.

Court declares petition against Nyachae’s appointment urgent

The case was mentioned before Justice Chacha Mwita on Thursday, July 17, who ordered that all documents be served without delay and responses to both the petition and related applications be filed within five days.

The court also warned that non-compliance with its directions would result in penal consequences. The matter is set to come up again for directions on July 28.

"Upon considering the pleadings, it is hereby ordered that the pleadings be served on all parties immediately, and that the responses be filed to the petition and application within five days after service," Chacha said.

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Michael Nyachae is the son of the late Cabinet minister Simeon Nyachae and brother to Charles Nyachae, who was recently appointed to the Kenya School of Government.

His nomination is one of several state appointments made by Ruto that have been flagged by civil society and governance watchdogs for allegedly bypassing due process.

Michael Nyachae
Michael Nyachae, son to the late Simeon Nyachae, was set to take helm of the Development Bank of Kenya. Photo: Michael Nyachae.
Source: UGC

Did Michael Nyachae sell family property without consent?

TUKO.co.ke previously reported that a family feud erupted after the sale of a property belonging to one of the companies linked to the late Simeon Nyachae, just three months after his death.

Michael allegedly sold the Kisii-based property for KSh 8 million, despite its estimated value being over KSh 35 million.

The matter was taken to court by a sibling representing Sansora Bakers & Confectioneries Ltd and its parent company, Sansora Investment Ltd.

The family accused Michael and a co-director of managing the businesses in a non-transparent way, disregarding the welfare of other shareholders and acting in their own interests.

Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.

Source: TUKO.co.ke

Authors:
Harry Ivan Mboto avatar

Harry Ivan Mboto (Current affairs editor) Harry Ivan Mboto is an accredited journalist with the Media Council of Kenya (MCK) and a Current Affairs and Politics Editor at TUKO. He is a Linguistics, Media, and Communication student at Moi University and has over three years of experience in digital journalism. Have a news tip, query, or feedback? Reach him at: harry.ivan@tuko.co.ke.

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