The Nairobi Metropolitan Service has suffered a major setback after the national Treasury declined to release funds to the office to pay the salaries of 6,052 seconded staff.
Treasury CS Ukur Yatani cited there being no legal provisions that funds can be released to the Major General Mohammed Badi -led office, noting that monies can only be released to the Nairobi County Government through the County Revenue Fund.
In a letter dated October 15, 2020 addressed to Badi, the CS highlights that Section 4(2) of CARA , 2020 provides that each county government allocation under subsection (1) shall be transferred to the respective County Revenue Fund.
This is in accordance with a payment schedule approved by the Senate and published in a Gazette notice by the Cabinet Secretary in accordance with section 17 of the Public Finance Management Act, 2012.
“The above legal provisions therefore imply that Equitable share allocation due to the Nairobi County Government including monies for personnel emoluments shall be transferred to the NCCG Revenue Fund Account,” Ukur said.
The CS said there are ongoing negotiations on issues of the Deed of transfer after the County Government of Nairobi issued a notice of Declaration of Dispute pursuant to Article 11.2 of the Deed of transfer on July 24, 2020.
The article provides that parties shall in the first instance , endeavour to resolve disputes governed by or arising from the deed through negotiations.
Yatani noted that parties form both the national and county government entered into an Interim Settlement Agreement as an expression of good faith and commitment to an amicable solution of the matters in dispute.
Among the matters highlighted were budgeting, provision and oversight of NMS funds and secondment of staff to NMS.
“The interim Settlement Agreement provided for formation of a committee to advise on issues contained in the notice of a declaration of dispute which includes provision of NMS funds and secondment of staff to NMS,” reads the letter.
In addition, The CS said he is waiting for guidance from the Office of the Attorney General on the way forward.
