The High Court in Nairobi has ordered prominent city lawyer Thomas Gichana Nyakambi of the firm Thomas Gichana Nyakambi & Company Advocates to release KSh62,913,530 to a client after finding that he unlawfully withheld funds received on their behalf from the Ministry of Tourism and Wildlife.
In a ruling delivered by Justice Alexander Muteti, the court found that Nyakambi breached his fiduciary duty by failing to account for the full settlement amount, despite having been contracted to facilitate payment in a long-standing compensation claim.
Background of the Case
The case, filed in March 2023 through an Originating Summons, revolved around a settlement processed by the Ministry of Tourism and Wildlife after Parliamentary Accounts Committee (PAC) deliberations and recommendations from the Auditor General.
According to court documents, the Ministry released KSh85.7 million in July 2021, which was wired to the firm’s advocate-client account at Sidian Bank. The funds were intended to settle claims in favor of the client, identified as Kwayera, who later accused Nyakambi of withholding the bulk of the payment.
While the lawyer sporadically deposited small amounts to his client, records showed that the larger portion — totaling more than KSh62 million — was never released. Instead, the claimant alleged, Nyakambi diverted part of the money to third parties and business associates without consent.
Lawyer’s Defense
In his defense, Nyakambi argued that the payments were made in tranches, with the knowledge and approval of the client. He further claimed that certain allocations to associates were authorized and facilitated by government officials.
He also maintained that the client had no enforceable decree supporting the claim for the disputed KSh62 million, suggesting the matter was being exaggerated.
Court Findings
Justice Muteti dismissed the lawyer’s explanation, stating that as a fiduciary, an advocate is legally obligated to act honestly, transparently, and in the best interest of the client.
Citing Section 107 of the Evidence Act, the court held that Nyakambi had failed to discharge his burden of proof regarding lawful disbursement of the disputed amount.
“It is my view that a fiduciary duty existed in this case, and the defendant breached that duty by failing to account fully for the sums received,” Justice Muteti ruled.
The court further emphasized that any advocate-client relationship is founded on trust and accountability, and that diversion of client funds — even partially — constitutes professional misconduct.
Orders Issued
As a result, the court directed Nyakambi to release KSh62,913,530 within seven days, together with the costs of the suit.
The ruling adds to the growing concerns around accountability in the legal profession, where advocates are expected to uphold the highest standards of integrity in handling client funds.
Wider Implications
The case has reignited discussions on the role of the Law Society of Kenya (LSK) in safeguarding client funds and enforcing strict disciplinary action against lawyers found culpable of misappropriation.
Legal analysts note that while fiduciary breaches by advocates are not uncommon, the magnitude of this case — involving tens of millions of shillings from a government payout — underscores the urgent need for tighter regulatory oversight.
For the client, the judgment represents long-awaited relief, while for the legal fraternity, it serves as a stern reminder that professional trust must never be compromised.