Counties

City Hall delays April salaries over Sh1bn transfer to taxman

Mr Robert Ayisi, the Nairobi County secretary. FILE PHOTO | NMG
Mr Robert Ayisi, the Nairobi County secretary. FILE PHOTO | NMG 

County government workers are yet to receive April salaries after the Central Bank transferred Sh1 billion from the county’s account to cater for tax arrears.

City Hall spends Sh1.3 billion monthly on salaries for its 13,000 workers and suffered a major blow after the CBK opted to settle City Hall tax dues.

Nairobi County secretary Robert Ayisi said they were exploring ways of reversing the transfer , among them seeking audience with Treasury secretary Henry Rotich and legal action.

“I sent a team to the CS (Cabinet Secretary) Treasury on Tuesday but he was not there; we are going back today (yesterday) to seek audience with him; on the court case I am yet to receive the feedback from the lawyer Tom Ojienda,” said Dr Ayisi.

Nairobi faulted the CBK for directing Sh1,017,393,208 from its recurrent account and having it credited to Kenya Revenue Authority’s Domestic Taxes income tax payer account. City Hall maintains the transaction is illegal and is calculated at sabotaging as well as blackmailing the regional government led by Evans Kidero.

The county government claimed a temporary court order issued on December 19 stopped the KRA from issuing any notices of getting monies from Equity Bank #ticker:EQTY, Co-op Bank #ticker:COOP, CBK and Webtribe for tax arrears.

On doctors’ pay, he said the decision not to pay them came from the Council of Governors.