NMS to settle small traders’ pending bills

Small and medium enterprises (SMEs) that supplied goods and provided services to Nairobi County valued at below Sh5 million are to be paid by the Nairobi Metropolitan Services (NMS).

NMS director-general Mohamed Badi said they are reviewing all claims that have been pending since 2013 with a view to settling them soon.

“The SMEs without ability to service the loans taken to fulfil the tender requirements have experienced a torturous journey ever since and recently a lady died at City Hall following a two-year struggle to get her claim paid,” he said.

Mr Badi said they will use the Professor PLO Lumumba-led committee’s audit report on pending bills to determine genuine claims and make payments with other large amounts left to the county government to settle.

Prof Lumumba who once served as the anti-corruption commission boss was in 2018 appointed by Governor Mike Sonko to scrutise all pending bills within a year and provide a way forwards on payments as well as formulate a foolproof procurement process.

While the committee conducted its work behind closed doors and concluded its work, its report remains top secret.

The total debt stood at Sh76.5 billion as at the close of 2019, having risen by Sh6.5 billion during the year.

Last March, Nairobi ward representatives approved more than a Sh3.6 billion supplementary budget for settling the debts accumulated during their term in office.

These include road contracts, as well as construction of classrooms, markets and public toilets within their wards, amounting to Sh859 million with the rest reserved for paying suppliers.

Then Nairobi County Assembly Finance and Budget Committee chairman Robert Mbatia said the pending bills were part of the Sh10.67 billion from 839 legitimate claims passed by the Auditor-General.

The Kariobangi South MCA said Auditor-General rejected 174 claims worth Sh6.1 billion citing lack of authenticity and supporting documents.

Of the Sh10.67 billion, the county has only paid contractors and suppliers Sh1.1 billion with another Sh3 billion to the Kenya Revenue Authority in value-added tax and pay-as-you-earn arrears.

City Hall also paid Sh166.9 million to Kenya Medical Supplies Agency last February to offset part of the Sh353 million medical supplies.

Sh120 million settled debts while Sh46 million went into securing new supplies.

While City Hall secured a freeze on all civil suits filed against it by contractors and suppliers pending scrutiny of the pending bills two years ago, Governor Mike Sonko has maintained that he inherited a large chunk of the pending bills incurred by his predecessors’ regimes.

MCA Mbatia said in 2013, City Hall inherited about Sh36.3 billion in debt that rose to Sh56.52 billion by 2017.