He also stopped the State from converting a 14-member committee spearheading reforms in the miraa industry into an implementation agency until the main case was heard and determined.
On the eve of the President Uhuru Kenyatta's visit to Meru County, the judge described a proposal to channel budgetary allocations through a proposed Savings and Credit Co-operative as the "worst kind of exercise of power".
The judge said he was convinced the miraa industry task force was appointed without consultation and that it worked and gave recommendations without the input of key stakeholders.
"It made recommendations unknown to the public, yet it had used public money and now the same people are to be given Sh1.2 billion to disburse," he said.
He was giving a preliminary ruling in an application filed by Nyambene Miraa Trade Association and its officials Kimathi Munjuri, Jacob Miriti and Naftali Kathurima.
The three have sued Head of Public Service Joseph Kinyua, the Cabinet secretaries for Finance and Agriculture, and the Attorney General.
They are seeking to have all allocations to the miraa sector in the region channelled through the county government with full consultation of all stakeholders.
hey argued that a directive to release the Sh1.2 billion to a proposed miraa co-operative without involving the county government contravened national principals of power sharing and devolution.
The judge ruled that the State failed to challenge the petitioners' argument that agriculture fell under county governments and that all stakeholders were not involved.
"The petitioners have established that a report was handed over to the President of Kenya and that a task force has been converted into an Implementation Committee, all this was undertaken without reference to the county government, petitioners and other stakeholders," he said.
The Standard kenya
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Court stops Sh1 billion miraa cash grant
The High Court in Meru Thursday temporarily stopped the Government from using Sh1.2 allocated to miraa farming in the budget.