Nairobi MCAs demand perks to pass Finance Bill

The Nairobi County Assembly has adjourned sittings for a week soon after resuming from a one-month recess, following a standoff with the Executive over the Finance Bill that threatens to paralyse revenue collection.

Members of the County Assembly threatened to shoot down the Finance Bill if it is brought to the House and instead decided to go on recess for another week until the amendments they want are included.

“The members are very hostile to the Bill because of these issues so the Assembly had to be adjourned to next week,” County Budget committee chairman Michael Ogada said.

The MCAs are demanding release of Sh380 million for their mortgages and also want the county to avail Sh3 billion for ward development projects.

READ: Nairobi MCAs threaten to block rates collection over ward funds

Mr Ogada said the Budget Committee would meet the county treasurer Thursday in a bid to end the deadlock. The Bill’s passage is key to giving the county government legal authority to charge taxes.

Some MCAs on Tuesday urged Nairobi residents not to pay any levies, claiming that it was illegal as the Finance Act 2013 had expired. But their position, however, is subject to mixed legal interpretation.

Some have argued that Nairobi residents could move to court to challenge taxes levied 90 days after passage of the Appropriations Bill while others say that the Finance Act continues to be in force until the current Finance Bill is passed.

The Public Finance Management Act states: “Not later than 90 days after passing the Appropriation Bill, the county assembly shall consider and approve the Finance Bill with or without amendments.”

But according to constitutional lawyer Peter Wanyama, the PFM Act is just a guide to the budget-making process and does not impose penalties for non-compliance.

“The law does not envisage that there could be a lacuna. The Finance Act has a transitional clause meaning it applies until a new law comes into force,” he said.

Mr Ogada said MCAs are yet to get an official interpretation from the Commission for the Implementation of the Constitution (CIC) on the provision of the PFM Act.

“I got advice from a lawyer who told me that the county is at liberty to continue using the old law but another told me that this is opening the county to litigation,” Mr Ogada said.

Attempts to talk to CIC chairman Charles Nyachae were not successful as his phone went unanswered and he did not respond to our text message.