The loss comes after a final court ruling.
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The loss added to the woes Mr Odinga is facing after the seemingly ‘political suicide’ he committed by quitting the October 26 repeat pols.
The National Political Parties Fund failed to remit close to Sh4.1 billion to Mr Odinga’s party kit, a court was told on Wednesday.
Mr Odinga’s ODM party went to court in January this year demanding payment of arrears accrued between 2012 and 2016.
Through its lawyers, ODM told the court in Nairobi that it only received a record Sh100 million as opposed to the full amount set by law.
In the ruling, however, High Court judge Roslyne Aburili argued that she could not force the taxpayer to shoulder the arrears as ODM never demanded the money.
She further said the fund set aside from the national revenue was not a debt and thus could not be paid if it was not allocated by the National Assembly at the time.
“The party waited for four financial years to demand the money, yet it knew that Parliament had not been allocating the correct figures,” Justice Aburili ruled.
She added: “It will not be in the interests of justice or public policy for the amount to be released to the party.”
Ideally, the Constitution and election laws requires that Parliament would allocate not less than 0.3 per cent of the total revenue collected by the national government every year to the Political Parties Fund.
In addition, the requirement further demands that 95 per cent of the fund be distributed proportionately by reference to the total number of votes secured by each political party in the preceding General Election.