Budget boss probes claims Sh560m City  Hall staff cash diverted

Controller of Budget Margaret Nyakang’o. PHOTO | JEFF ANGOTE | NMG

What you need to know:

  • The City Hall employees’ union had last week issued a 21-day strike notice over the diversion of the funds by the Ann Kananu-led administration.
  • The alleged diverted funds include statutory deductions and union dues amounting to Sh490.47 million between October and December 2021 as well as staff claims for January 2022 totaling Sh70 million.

The Controller of Budget has launched probe into claims of diversion of more than Sh560 million City Hall staff funds by the executive, even as the Ministry of Labour appealed to the workers not to down their tools.

The City Hall employees’ union had last week issued a 21-day strike notice over the diversion of the funds by the Ann Kananu-led administration while also calling for investigation and audit of the county government’s expenditure during the period under focus.

The alleged diverted funds include statutory deductions and union dues amounting to Sh490.47 million between October and December 2021 as well as staff claims for January 2022 totaling Sh70 million.

In a letter to the Kenya County Government Workers Union (KCGWU) general secretary Roba Duba, Controller of Budget Dr Margaret Nyakang’o said “they are seized of the matter” and will institute investigations in accordance with article 252(1)(a) and (b) of the Constitution.

Consequently, she said her office will immediately review Nairobi County government’s requisitions for withdrawal of funds for October, November and December 2021 to ascertain the allegations of diversion.

“This will help us ascertain whether there was diversion of funds and that public money was utilised in a prudent and responsible manner in line with article 210(d) of the Constitution,” said Dr Nyakang’o in the February 3, 2022 letter addressed to Mr Roba and City Hall Finance CEC Allan Igambi.

“Further, we urge you to share with us any evidence you may have to support the review and our investigation,” she added.

The new development follows a three-week ultimatum given to City Hall by the union to immediately remit all the deductions without any further delay failure to which they resort to industrial action.

“...Be warned, failure to pay all the deductions within 21 days will leave us with no option but to institute serious industrial action you holding, the concerned officers personally responsible as to attendant consequences thereof,” said Mr Duba in a statement.

Mr Roba pointed out that failure to remit the deductions has exposed the staff to untold suffering with those who had loans in banks are being penalised for actions that do not lie squarely at their behest.

For their part, Labour ministry has urged the more than 12,000 workers to suspend the strike notice committing to amicably resolve the issue.

In a letter dated February 1, 2022, the Ministry’s Chief Industrial Relations Officer Mr Kisurulia Kuloba said they have appointed Mr Boaz Musandu to assist the workers’ union in resolving the issue through consultative dialogue.

“ In the light of the aforestated, the union is required to immediately suspend the strike notice they have issued and wait for the outcome of the envisaged consultations as the dispute resolution mechanism has already been set in motion,” reads the letter.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.