•Legal payment from City Hall has been in the spotlight, attracting investigation agencies.
• “All pending bills will be reviewed case by case before any payment is done,” Sakaja said.
Image: /TWITTER
Nairobi county may have its assets auctioned or seized as City Hall’s debt crossed Sh100 billion.
As of September 30, 2022 the pending bills had amounted to Sh100.2 billion.
This is according to the Controller of Budget, County Government Budget Implementation review report for the first quarter of the 2022-23 financial year.
Other counties with a high level of pending bills are Wajir at Sh5.5 billion, Kiambu (Sh4.8 billion) and Mombasa at Sh4.51 billion.
Kilifi recorded Sh3 billion, Kajiado (Sh2 billion), Kisumu (Sh1.9 billion), Busia (Sh1.7 billion), Kisii (Sh1.3 billion) and Marsabit (Sh924 million).
Its only Mandera county which did not report any outstanding pending bills during the period.
Counties will low pending bills include Elgeyo Marakwet (Sh7.8 million), Lamu (Sh73 million), West Pokot (Sh133 million), Nyamira (Sh175 million), Nyeri (Sh449.1 million), Nakuru (Sh574 million) and Tharaka Nithi (Sh689 million).
Last November, Deputy President Rigathi Gachagua said counties, AG, and CoB will develop an action plan on how the debts would be paid.
Prior to payment, an audit of the services rendered is required, according to the DP, who is also the chairman of the Intergovernmental Budget and Economic Council.
NAIROBI'S BALLOONING DEBT
To reach the Sh100.2 billion mark, City Hall's debt has grown by more than Sh20 billion, having stood at Sh78.1 billion on June 30, 2021.
Law firms are owed Sh21.2 billion, government guaranteed loans stand at Sh15.3 billion while water and foreign loans account for Sh3.8 billion.
The county government also owes the Local Authorities Pension Fund Sh24.9 billion in unremitted contributions.
It owes Kenya Revenue Authority Sh932 million in unremitted pay-as-you-earn of Sh707.9 million, with penalties and interests accruing from the same amounting to Sh105.7 million.
The devolved government owes KRA another Sh118.5 million in VAT.
City Hall also owes KCB Bank Sh4.5 billion in long term loans. The same amount is owed to suppliers and contractors.
In February, the High Court allowed KCB Group to seize and auction the assets of the city county government over a Sh4.3 billion defaulted loan.
According to the report, City Hall owes the National Social Security Fund Sh282 million, Kenya Power (Sh243 million), outstanding water bills amount to Sh234 million while retirees are owed Sh222.4 million in benefits.
The report also says City Hall is owed Sh1.621 trillion, with land rates accounting for Sh1.616 trillion.
Governor Sakaja had questioned the county’s pending bills, especially the legal pending bills worth Sh21 billion.
He said the legal pending fees were an area of concern yet the county rarely wins court cases.
Sakaja said all pending bills will be audited to reveal the legit ones.
“All pending bills will be reviewed case by case before any payment is done,” he said.
Legal payment from City Hall has been in the spotlight attracting investigation agencies.