NACADA chief executive officer William Okedi is charged in relation to the loss of funds that were intended for the noble course.
Dr Okedi has denied he failed to ensure NACADA procured a consultant to manage the Alcoholic Drinks Control Fund.
The fund, the court heard, had been set aside for use by civil society groups to create awareness on Alcoholic drinks.
He is also accused of failing to follow proper procedures when he approved a payment of KSh12.8 million to Ernst & Young, which was contracted to manage the Alcoholic Drinks Control Fund.
The offense was allegedly committed between May 2013 and October 2015.
He is also facing an abuse-of-office charge stating that he conferred on Ernst &Young a benefit in the contract for the provision of financial management agency services.
Five other NACADA officials have already been charged over the offences.