City Hall could be treading on dangerous ground after the MCAs failed to pass a law to allow it collect taxes from residents.
The deadline for the passage of the 2018-19 Finance Bill lapsed yesterday. This implies that a resident can move to court and stop the county from collecting taxes.
But Finance Committee chairman Robert Mbatia said there is no cause for alarm as failure to approve the Bill cannot stop the county from collecting taxes.
“Once the Bill has been tabled and Appropriations Bill passed, then the other levies and taxes implies. There is no illegality,” he said.
The Public Finance Management Act states that the Finance Bill shall be passed 90 days after the passage of the enactment of the Appropriation Act.
The Nairobi City County Appropriations Act, which authorised the county to spend Sh34 billion, was signed into law by Governor Mike Sonko on June 30. This meant the Finance Bill must have been debated and approved by September 30.
