City Hall service providers to wait longer for pay

City Hall will not pay contractors and suppliers unless the Treasury increases its budget allocation, citing a large wage bill.

Deputy governor Jonathan Mueke said the Sh14 billion expected from the Treasury in the year beginning July only covers employee costs, leaving the county with no cash to pay the contractors.

But Nairobi expects to raise more than Sh10 billion from fees and rates that is consumed by other expenses such as settling bank debts, buying cars and revamping roads for county hospitals.

“If you want the contractors to be paid let the national government add the county more money because what we receive is not enough,” said Mr Mueke.

Some of the contractors have not been paid since 2013 leading to frequent protests.

City Hall owed contractors and suppliers Sh2.3 billion as at December, according to the county’s debt management strategy paper.

Patients who visit health centres inNairobi are grappling with drug shortage after the Kenya Medical Supplies Authority cut its supply over a Sh108 million debt.

READ: Drug shortage hits Nairobi as Kemsa cuts supply over debt

Data from the Controller of Budget shows that in the year ending June 2015, the county spent Sh13.92 billion on wages.

The county government inherited 11,000 employees from the defunct local authority and an additional 3,300 workers were seconded to the City Hall from the national government after the last General Election.

The existing employees together with fresh recruitment and a salary increase from a collective bargaining agreement have seen City Hall’s monthly wage bill nearly double from Sh650 million to Sh1.1 billion.