Nairobi Governor Mike Sonko has been reprieved by the dismissal of the case on the alleged loss of Sh1.7 billion.
Sonko was taken to Court by MCA Peter Imwatok who claimed that he misappropriated the funds through irregular procurement of health services for staff.
In a ruling on Wednesday, justice Hedwig Ong'undi said the court had no jurisdiction to hear and determine the issues raised.
The judge said Imwatok, the assembly Minority Leader, ought to have followed the right procedures, being the dictates of the Public Procurement and Asset Disposal Act as well the EACC.
“The petitioner ought to have filed his petition within the right agencies .The petitions is premature hence it fails," Ong'undi said.
The MCA had asked the court to issue an order allowing the audit of the financial books of AAR Insurance Kenya and Bliss GVS Healthcare Limited for financial years 2015/16, 2016/17 and 2017/18.
On April 25, Majority Leader Abdi Guyo defended the county saying the procurement process was above board.
He said all the procurement laws, including the Public Finance Management Act, were duly followed and that not a single firm that lost the bidding has complained about the process.