NMS to start receiving funds directly from Treasury

Nairobi Metropolitan Services will start receiving money directly from the National Government without having to pass through City Hall.

Last week, NMS and the County Government of Nairobi signed a framework of transfer of funds between both parties.

The event took place at the National Treasury offices, witnessed by the Cabinet Secretary for Finance, Ukur Yatani.

However, details of the framework have not yet been made public.

The framework is an important key as it means the Mohammed Badi-led entity can now get direct funds from the treasury without passing through the Nairobi County Revenue Account.

Last year in October, the National Treasury declined a request to release money for payment of salaries for 6,052 NMS staff seconded from City Hall.

In a letter addressed to NMS Director-General Mohammed Badi, Treasury CS Ukur Yatani said there was no legal framework in place to facilitate such a transaction.

He said the funds can only be remitted to the Nairobi County Government (NCCG) Revenue Fund Account and not to NMS.

In the letter dated October 15, 2020, Yatani noted that specific tenets of the law made it illegal to approve such a transaction.

He pointed out that Section 4(2) of County Allocation of Revenue Act (CARA), 2020 provides that each county governments' allocation shall be transferred to the respective County Revenue Fund, in accordance with a payment schedule approved by the senate and published in the Kenya gazette by the CS, in accordance with section 17of PFM Act, 2012.

"The above legal provisions, therefore, imply that equitable share allocation due to Nairobi City County Government, including monies for personnel emoluments, shall be transferred to NCCG Revenue Fund Account," read the letter.

This is yet another indication that NMS tenure will be extended come next year.

The National Government last year on February 25th took over control of four crucial county functions from the Nairobi County Government amid concern over how former Nairobi Governor Mike Sonko was running affairs of the key county.

Articles 187 and 189 of the Constitution allow for transfer of power between levels of government if the transferred function or power would be more effectively performed by the receiving government

As a result, President Uhuru Kenyatta, through Executive Order No. 3 of 2020 transferred the crucial health, transport, planning and development, and public works functions from the Nairobi County government to the Nairobi Metropolitan Services (NMS) and installed Lieutenant Mohamed Badi as its Director-General.

The signing of the Deed of Transfer left City Hall in control of less influential departments such as ICT and E-Government, Education and Sports, Agriculture and Livestock, Trade and Co-operatives and Devolution, Environment and Finance sectors.

Come to the same date next year or even before, NMS fate will be known.