The High Court has temporarily stopped the NGO Coordination board from de-registering Evans Kidero Foundation.
Justice George Odunga issued the orders on Friday, pending hearing and determination of a case filed by the Foundation.
The Board had last Tuesday de-registered the charitable organization, citing financial irregularities.
“Your organisation has breached the provisions of regulation 24 read together with clause 5 of the terms and conditions attached to your registration certificate by failing to file annual returns," Mohamed said in the de-registration letter.
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But the organisation, through its lawyer Willis Otieno, argued that the Board did not follow the due procedure in de-registering it.
The Judge ordered the parties to appear in Court on March 13 for further directions on the hearing of the case.
“The Board may have violated the rights of the applicant and did not follow due process in coming up with that decision,” Otieno said.
In December 2016, NGO Co-ordination Board chairman Fazul Mohamed suspended activities of the Foundation until its directors submit audited accounts for the past four years.
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The Foundation however said that it filed all its financial returns and submitted the same to Kenya Revenue Authority, contrary to the Board's assertion.
Mohamed said that the Foundation opened and operated unauthorized bank accounts and its directors were officials of Nairobi City County government.
He advised the asset recovery agency to audit all assets under the foundation.
"The Central Bank of Kenya, the Financial Reporting Centre and the Family Bank Kilimani branch are advised to preserve all funds held under the Evans Kidero Foundation until further communication from this office," the letter continues.
The Board accused the foundation of transacting millions of shillings within the period under review yet it has no stipulated donors.
But the Lawyer Otieno said that the organization started before Kidero was elected the Governor and even the directors were employed by City Hall.
He said the Foundation had only Sh41,000 in its bank account at the time the Board raised the financial irregularities last December.