Parliament has asked Nairobi County to immediately release Sh3.4 billion owed to suppliers ahead of the August 9 General Election.
This is after the Executive Office of the President blamed Nairobi governor Anne Kananu for failing to remit the cash to the Nairobi Metropolitan Service (NMS) despite the Treasury releasing the money to the devolved government.
The cash is owed to more than 1,000 suppliers including media houses, medical firms, construction companies and airport parking services that rendered services to the NMS in the year to June 2021.
Kinuthia Mbugua, State House comptroller, told Parliament that the City Hall had failed to remit the cash that the Treasury sent to it for the NMS to clear supplier dues.
“The exchequer releases usually go to the Nairobi City County government before it is rerouted to us (NMS).
“The governor has the authority to direct the payments. This money was meant for certain purposes and we have to decide how to pay these suppliers before the end of the August General Election.”
The national government in February 2020 took over four crucial county functions from the City Hall following concerns about how former governor Mike Sonko was running affairs of the county.
President Uhuru Kenyatta, through Executive Order No. 3 of 2020, transferred the crucial health, transport, planning and development and public works functions from the Nairobi County government to the new outfit and installed Major-General Mohamed Badi as its director-general.
The signing of the Deed of Transfer in March 2020 between Mr Sonko and the State left the county in control of less influential departments such as ICT and e-government, education and sports, agriculture and livestock, trade and co-operatives and devolution, environment and finance.
The National Assembly’s Public Accounts Committee (PAC) questioned why suppliers whose verified pending bills had not been paid nearly a year after rendering services.
“I direct that Nairobi City County governor immediately liaise with the Executive Office of the President to have the monies released to offset verified pending bills totalling Sh3.4 billion. This must be cleared before August General Election,” Opiyo Wandayi, who chairs PAC ordered.
Auditor-General Nancy Gathungu had flagged pending bills totalling Sh5.39 billion that remained unpaid by the Executive Office of the President.
Mr Mbugua told PAC that the office of the President had cleared pending bills totalling Sh1.9 billion in the financial year 2021/22 and continues to engage the Treasury and the Nairobi County government for additional budget to clear the remaining pending bills.
He said the term of the NMS comes to an end in November this year, two months after a new county administration is elected into office.
He told the Wandayi-led committee that the Nairobi City County (NCC) government and the NMS mutually agreed to extend the life of the agency from June to November.
Mr Mbugua told MPs the term of the NMS was to expire in June but was extended to November by way of mutual agreement.
“The NCC is quite comfortable with the new agreement. After elections, NMS will be in place until November when its terms end,” Mr Mbugua said.
“The new county government will continue with the NMS for the next two months and will decide whether they will continue with this marriage or go separate ways.”
Mr Mbugua said the NMS saved the city from extinction in terms of infrastructure, and health facilities among others and the next county administration will take over from a solid foundation it has established.
