DECLINING FORYTUNES

City Hall to collect lowest revenue ever this financial year

MCA says Executive's spending priorities need to be interrogated further

In Summary

• MCA says Executive's spending priorities need to be interrogated further

City Hall Building front side./Victor imboto
City Hall Building front side./Victor imboto

Nairobi's revenue collection for 2018-19 financial year is expected to be the worst ever recorded in history.

County assembly Budget and Appropriations committee vice chairman Patrick Karani said revenue collection will be very low. 

The county collected Sh3.7 billion in the first half (June to December). 

In January, Sh1.7 billion was collected, Sh1 billion in February and last week, which marked the end of the third quarter, around Sh1.4 billion was collected.

"The total collected from last year June up to this March comes to 7.8 billion. You can see that this year we are going to underperform in terms of the budget," Karani said.

He said City Hall will not raise Sh10 billion like it did in the last financial year.

The vice chairman said the Annual Development Plan for the next financial year ( 2019-2020) is not supported by the revenue.

Karani said the Executive's spending priorities need to be interrogated further because the money raised will not pay for the current projects.

"This calls an alarm for the next budget. It is important for the Executive to realise now that things are not okay and it is high time they put their House in order and made sure this county meets its revenue target," he said.

Last week, the legislators passed a motion on the adoption of the report on the Annual Development Plan for the next financial year.

Embakasi ward rep Michael Ogada, also a member of the committee, said the assembly needs to put the Executive on check on implementation issues.

"We do pass documents but in terms of implementation, there are issues. It is upon the assembly to stamp their authority and ensure that we put the executive to check such that whatever is approved and passed is practically implemented," he said. 

"It makes no sense for a house to spend all these hours looking into documents, discussing documents, making informed decisions and finally nothing seems to be done." 

Ogada urged the executive to take the resolutions of legislators seriously, saying it is not realistic to pass a huge document such as the ADP and still have nothing take place. 

In February the House, led by Majority leader Abdi Hassan Guyo, raised concerns about the county's declining revenue and wanted the matter investigated.

He said the committee, chaired by Kariobangi South MCA Robert Mbatia, will investigate the matter. 

The committee, for the past one month, has been carrying out inquiries on the performance on all the internal revenue streams.

The committee will proceed to report writing where they will highlight their findings and prepare recommendations. 

 

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