Hundreds of City Hall workers are yet to receive their June salaries, signalling a deepening financial crisis at Nairobi County.
The 12,800 workers, including those seconded to the Nairobi Metropolitan Services (NMS) headed by Mohamed Badi in April, were last paid in May. The workers in a protest letter to county secretary Justus Kang’ethe said the delay in payment of salaries has caused untold suffering to its members, especially because of the current difficult times.
“The salaries to our members for June 2020 fell due on June 30, 2020. To date, salaries have not been paid.
“The delays in payment have not been explained by your office,” said Kenya County Government Workers Union Nairobi branch secretary-general Boniface Waweru.
He said apart from the delayed June salaries, debts relating to unremitted statutory deductions have not been paid by City Hall.
Mr Waweru said City Hall had not promoted a majority of his members. He added that retirees had also not received their dues contrary to a pact they signed with City Hall on February 5, 2020
Governor Mike Sonko’s spokesperson Elkana Jacob, however, said the City Hall paid workers their June salaries but banks had delayed in releasing the cash
He did not disclose the banks that had delayed the workers’ pay and why. “As you know, we are in a new financial year. There were some delays from the Controller of Budget and the Treasury.
“Paying workers on time has been one of the governor’s priorities since he took the oath of office,” said Mr Jacob.
City Hall pays its workers between 25th and 27th of every month but June salaries had not been paid by close of business yesterday. City Hall spends around Sh1.2 billion on salaries per month.
However, the county recorded its lowest ever internal revenue collection of less than Sh8.5 billion.
City Hall earmarked Sh17.3 billion as revenue target for the last fiscal year but had collected Sh7.76 billion ahead of June 30 end of the financial year.
In March, the county warned budget for next financial year could be trimmed by up to Sh5.6 billion due to poor revenue collections.
This financial year, City Hall had a deficit of more than Sh10 billion to finance the Sh36.98 billion budget after realising only Sh26.5 billion from equitable share from the national government, conditional grants and own-source revenue.
The county’s source revenue stood at Sh10.25 billion while the equitable share was Sh15.5 billion, the rest being conditional grants.