City Hall to pay contractors, suppliers Sh6.4 billion by end month

Nairobi governor Mike Sonko pose for a photo with school children at Masjid Makina mosque in Kibera on June 5th2019. He said he has canceled orders to procure official vehicles for top county officials at the Nairobi County. [Standard]

Contractors, lawyers, suppliers and other parties in business with City Hall are set to be paid debts amounting to Sh6.4 billion by end month.

Governor Mike Sonko yesterday committed that his government would offset pending bills within the stipulated 30 days in line with a directive by President Uhuru Kenyatta.

On Madaraka Day, President Kenyatta directed all ministries to ensure they clear their pending bills on or before June 30, which is the end of the current fiscal year.

He also urged the county governments to clear pending payments, which he said have negatively impacted on economic growth and crippled businesses.

Contractors and suppliers had claimed that they are owed Sh60 billion by City Hall, but a pending bills task force formed by Governor Sonko pegged the figure at Sh6.4 billion after thorough scrutiny.

The Patrick Lumumba-led task force, in its report presented to the governor, outlined the bills to be paid as public works (Sh1.5 billion), public services (Sh1.1 billion), legal works (Sh537 million), legal fees (Sh2.7 billion) and current pending works including roads, markets, and other projects.

“A comprehensive report was handed over to me a couple of weeks ago and we ended up with a figure of around Sh6.3 billion,” said Sonko.

“Unscrupulous businessmen colluded with some members of staff to create fake delivery notes, fake invoices and fake LPOs to fleece the county government but we detected this and that is why the figure came down from Sh60 billion to Sh6.4 billion.”

Over 30 procurement officers were consequently sent packing after it emerged they had falsified documents in a bid to fleece millions from the county.

The city boss further explained that the county had entered into a deal with the national government to see how the devolved unit would recoup part of Sh200 billion it is owed in rates, parking fees and other services rendered.

He said that the county would rely on the cash from the national government to offset some of its debts such as those owed to NHIF, NSSF, Lapfund, Laptrust and KRA. City Hall currently owes KRA Sh3 billion.

“We have to rely on money from the national government because if we use our revenue collections, we will paralyse county operations,” he said.

Last year, Governor Mike Sonko formed the pending bills task force to look into a Sh60 billion debt accrued by the former regime. The committee comprised former Ethics and Anti-Corruption Director Patrick Lumumba, Deputy County Secretary Leboo Morintat, Budget and Appropriation Committee Chairman Robert Mbatia, Public Accounts Committee Chairman Wilfred Odalo, Yusuf Murabwa, David Kangara, Timothy Naeku, Maurice Juma and Charles Chege Kariuki.