Why Nairobi city’s Sh35b budget could be nullified

The Nairobi City County Government’s Sh35.9 billion 2017-2018 budget was unprocedurally passed and risks being nullified, it has emerged. County Assembly officials now say the approval process must be repeated.

The county treasury published the Appropriations Bill, which is meant to authorise expenditure, before MCAs approved the budget estimates. This violated the Public Finance Management Act.

“Upon approval of the budget estimates by the county assembly, the finance executive shall prepare and submit a County Appropriation Bill to the assembly of approved estimates,” reads Section 129(7) of the Act.

County Assembly Clerk Jacob Ngwele said a city voter had brought the matter to their attention. He said the bill was published on March 5 whereas the assembly had passed the estimates on March 4.

“Yes, there is an irregularity and we are consulting over the next move. The law is very clear that the estimates must be passed before the bill is introduced,” said Mr Ngwele.

The clerk blamed the county treasury for publishing the bill before confirming whether the estimates had been passed. He said the county should have waited for clearance from the assembly before publishing it. “Anybody can now move to court and challenge the budget. But that is a risk we cannot take. We are planning to start the process afresh,” he added.

County Attorney Gad Awuonda said the bill would be republished but claimed the assembly was out to make trouble. He took issue with the fact that they were the custodians of the dates and said they ought to have communicated the information to the county executive.

The county has until June 30 to publish the Appropriations Bill.

This comes against the backdrop of an announcement by Controller of Budget Agnes Odhiambo that all 1,400 by-laws enacted in the 47 counties in the past four years have no basis in law as they have never been published in the Kenya Gazette as stipulated.

Ms Odhiambo has since issued a directive that the laws should be published in the Kenya Gazette in two weeks or they will be deemed null and void.