The appellate court said the issues the National Assembly raised could best be addressed before the High Court.
The judges added that Justice Chacha Mwita, who issued the orders in March last year, appreciated the weight of public interest in the matter before him.
The MPs had moved to the Court of Appeal after Justice Mwita issued temporary orders stopping the inquiry.
The MPs said the move amounted to muzzling the Legislature and an affront to the separation of powers.
A parliamentary inquiry against Auditor-General Edward Ouko remains suspended after legislators failed to convince the Court of Appeal to lift the orders issued by a judge last year.
The appellate court said the issues the National Assembly raised could best be addressed before the High Court.
“It is not lost to us that all of these skirmishes are a mere corollary to the main issue to be sorted out at the substantive hearing of the two sets of proceedings at the High Court, the conclusion of which would in all probability lead to substantive appeals in this court.
“We think that the near-kneejerk resort to interlocutory appeals, such as the one before us, does little to aid in the just, expeditious and affordable determination of disputes,” said justices Roselyn Nambuye, Patrick Kiage and Agnes Murgor.
The judges added that Justice Chacha Mwita, who issued the orders in March last year, appreciated the weight of public interest in the matter before him.
The MPs had moved to the Court of Appeal after Justice Mwita issued temporary orders stopping the inquiry.
The MPs said the move amounted to muzzling the Legislature and an affront to the separation of powers.
In a statement filed in court, the National Assembly through its clerk, Michael Sialai, said public interest lies in allowing the departmental committee and MPs to carry out its constitutional mandate.
He said Mr Ouko will not suffer any prejudice by appearing before the committee to respond to the allegations against him.
On the other hand, he added, it would be prejudicial to Mr Ouko if he is not accorded an opportunity to be heard by the committee.
The Departmental Committee on Trade and Finance had started the inquiry after lawyer Emmanuel Mwagambo Mwagona filed a petition, seeking Mr Ouko’s removal.
Mr Sialai said the petition was committed, as required by the Standing Orders, to the relevant committee for consideration and report.
The committee called several people and Mr Ouko appeared in some of them although, the committee’s intention was to hear him last so that he could respond to all matters raised.
However activist Okiya Omtatah challenged the inquiry in court, saying Mr Ouko was being subjected to double jeopardy because the matter had been considered by the Director of Public Prosecutions.
