The decision effectively ends the criminal proceedings that had accused the former county boss and his co-accused of involvement in the alleged misappropriation of public funds amounting to Sh73.5 million.
In its ruling, the court also issued orders for the refund of cash bail that had been deposited by the accused persons during the course of the trial.
In addition, it directed the release of all passports that had been surrendered to the court as part of the bail conditions.
The ruling follows an application by the DPP seeking to discontinue the case, a request that the court found to be within the legal framework provided under Kenyan law.
The court noted that it was satisfied that the withdrawal met the required threshold and was properly justified under the circumstances presented before it.
The case, which had drawn significant public attention due to the profile of the accused persons and the amount involved, had been part of broader anti-corruption efforts targeting alleged misuse of county funds.
According to court records, the charges implicated Obado, his children, and associates in transactions linked to the alleged loss of public funds during his tenure as Migori County Governor.
However, the prosecution’s decision to withdraw the matter marked a significant shift in the trajectory of the case.
The court emphasized that its role was to ensure that the withdrawal process complied with legal standards and that the rights of all parties involved were respected.
After reviewing the application, it concluded that there were no legal barriers preventing the discontinuation of the proceedings.
With the case now formally closed, the accused persons are expected to have their bail securities processed for refund, while their travel documents will be released upon completion of administrative procedures by the court registry.
The decision effectively brings to an end years of legal proceedings that had placed the former governor and his family under prolonged judicial scrutiny.