Nairobi Governor Evans Kidero wants Senate to compel the government to settle a Sh72 billion debt it owes the county.
The Governor petitioned the Senate Finance and Budget Committee on Thursday, to help his administration recover the money accrued over time.
Kidero said they have been unable to meet most of their obligations because of cash flow challenges, a matter he said, has been compounded by the debt.
“Nairobi is currently facing cash flow challenges and is unable to meet obligations which include payment of salaries, statutory deductions and service delivery,” he told the committee.
Kidero told the team led by Mandera Senator Billow Kerrow
that the government has declined to pay Sh63 billion for 2,000 acres it acquired from the county for the military base
in Embakasi.
Some Sh9 billion, which has accrued from rates and parking for government vehicles, has also not been cleared.
The Governor noted this was despite
several appeals to the National Treasury and the Cabinet.
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The committee, sitting at City Hall, demanded to know whether Nairobi had exhausted all mechanisms before asking for the Senate's intervention.
“What I want to know is whether the money has not been recovered because of laxity on your part...you have very many avenues. You can auction the property or seek a court order for enforcement.” Kerrow said.
But Kidero responded: “We know the Rating Act allows us to auction property belonging to defaulters, but it is practically impossible to auction Parliament for example. That is why we have resorted to other mechanisms, which include petitioning the Senate."
Migori Senator Wilfred Machage argued that the law providing for action on defaulters’ properties does not discriminate against private or public property.
According to the Governor’s submissions, KBC owes City Hall Sh2.6 billion, the National Assembly Sh48.6 billion and Kenya Power Sh605.3 million.
The committee heard that the county owes other bodies, including national government institutions, Sh48 billion. They include statutory deductions owed to KRA, NSSF, and LAPTRUST AND LAPFUND.
"The two governments should undertake a debt swap and offset the balance either by cash guarantee or financial instruments," Kidero told the committee.
Addressing the journalists after presenting the petition, Kidero said that the government has declined to clear the debt because “I am a Cord Governor.”
“This is clear sabotage and frustration by the national government. If I were a Jubilee Governor, they would have settled this debt long time ago,” he said.
He said he will not hesitate to move to court if the Senate fails to intervene.
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