Nairobi, Jan. 28 -- Kenyan victims of the 1998 bombing of the US embassy in Nairobi have lost the legal battle to compel the Attorney-General to pursue compensation from top French bank, BNP Paribas and Sudan.

The High Court on Wednesday found no legal basis to force Kenya to seek reparations from the bank, Sudan, Iran, or assets linked to al-Qaeda in a verdict that eased a diplomatic storm.

The compensation relates to al-Qaeda's 1998 bombing of the US embassies in Kenya and Tanzania that killed 224 people.

The judge found that the suit did not meet the legal threshold to hold the State liable or mandate foreign litigation.

The victims, through the Katiba Institute rights group, had petitioned the High Court for an order directing Ken...