Nairobi MCAs threaten to block rates collection over ward funds

Nairobi MCAs have threatened to block the passing of the Finance Bill 2014 if they don’t get the Sh2 billion ward development funds, which could make it difficult for Governor Evans Kidero to raise taxes.

They also want their mortgage loans approved and bursaries disbursed before they can approve the Bill that allows the county to levy fees and charges.

The Public Finance Management Act provides that the Finance Bill must be approved within 90 days after the passing of the budget meaning that Nairobi has up to the end of this month to pass the Bill.

Failure to pass the proposed law will mean that the county will be collecting charges without a supporting law, which could trigger a law suit.

Failure to collect revenues could see services like garbage collection and other functions in the city grind to a halt.

A meeting convened by the Budget and Appropriations committee Wednesday to thrash out the issues ended in a stalemate as the MCAs demanded to be addressed by the chief finance officer, Jimmy Kiamba, and county secretary Lilian Ndegwa.

The treasury had sent chief accounting officer Luke Gatimu to address the MCAs but they insisted that he had no authority to listen to their demands.

Members also wanted an explanation on the implementation of last year’s budget as there has been a growing disquiet over the lack of development in Nairobi.

Development

“The members are saying that they did pass the Finance Bill for the past financial year, of which according to them they don’t see that the money was properly utilised,” said Budget committee chairman Michael Ogada.

The MCAs say since they were elected there have been no development projects in their wards, which has led them to demand for the money.

“Members have decided that they will not pass the Finance Bill until the Ward Development Fund money is released to the accounts,” said Karura MCA Kamau Thuo.