Sh4b bank overdraft Motion draws protest

Nairobi County Assembly in session. The assembly passed a Motion allowing the government to borrow money. [FILE]

Nairobi; Kenya: Members of County Assembly (MCAs) passed a Motion allowing the county government to borrow Sh4 billion as overdraft.

The move, however, enlisted protests from the minority side who argued it was not clear from which bank the overdraft will be taken and at what interest rate.

The issue triggered a heated debate in the House yesterday and at some point the majority side alleged the minority were plotting to slow down Governor Evans Kidero’s administration to find a reason to fault him.

“They are frustrating development so the governor is said not to be working,” alleged majority leader Elias Otieno. However, the rivals said they were for development, but questioned what the loan was intended for.

“We are not opposing development. We want to know the cost of borrowing this money. We do not want to borrow yet we have not paid the Sh5 billion the defunct city council took,” stated Millicent Mugadi an MCA.

LARGE CHUNK

In 2011, the city council took a Sh5 billion loan to settle statutory debts and by June this year, the county government had not cleared a large percentage of the loan that had accumulated an interest of Sh2.4 billion.

When Otieno tabled the Motion for approval, the loan he claimed was for members mortgage and ward development but MCAs opposed to it said such had been catered for in the Sh28.7 billion budget for 2014/15 financial year.

“We passed a budget in which capital development was catered for. The finance executive member should table revenue books showing how much we have collected in two years and how much we’ve spent,” said Mwiki Rep Isaac Ngige.

A nominated member, Karen Wanjiku faulted the move saying the due procedures were not followed in acquiring the loan.