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Duba demands Sh100b from creditors as Sh15b budget unveiled

BY RAWLINGS OTIENO and evelyne kwamboka 

Nairobi City Council will spend Sh11.5 billion in recurrent expenditure, according to the 2012/2013 budget estimates. Most of the money will be raised through land rates, business permits, and advertisements.

Also on the list of priorities are Sh75 million for school bursaries and Sh68.2 million for the expansion and rehabilitation of health facilities, crematorium, and buying ambulances.

“The foundation of an industrialised nation lies in having literate citizens. This can be achieved by ensuring access to quality education. The council has committed Sh139.3 million for education sector,” reads part of the budget.

While releasing Sh15.5 billion budget estimates for the current financial year, City Clerk Roba Duba said the council collects little money compared to the numerous responsibilities and expectations of residents.

Free service
Finance Committee Chairman Michael Ogada said the council will pump in Sh115.1 million for the construction of public toilets, trucks for garbage collection and construction of refuse storage chambers.

On revenue collection, Duba noted that the estimates for the current financial year stands at Sh11.3 billion against an expenditure of Sh15.4 translating to a budget deficit of Sh4.1 billion adding that with the deficit many projects were not sustainable.

The council is owed more than Sh100 billion by various debtors including government agencies led by the Department of Defence that has debt of Sh61 billion.

“Failure by the Government and its agencies to clear these debts is undermining efforts by the council to meets its mandate,” said Duba.

The city boss said that the council’s failure to meet its financial obligations, which include payments of salaries, statutory deductions and service delivery to the residents of Nairobi. He said that despite the challenges, the council has continued to offer free services including garbage collection, street and security lighting, rehabilitation of street families and maintenance of recreational facilities.

Duba at the same time warned all the debtors that they risk being ejected out of their premises if they fail to pay the debts that they owe the council.
Meanwhile, Kisumu Municipal Council will clear all its debts ahead of implementation of the county system of government. Town Clerk Christopher Rosana said yesterday Sh336 million has ben set aside for the debts. 

The council owes the National Social Security Fund Sh183 million, National Hospital Insurance Fund Sh30 million, Sacco Sh14 million, court awards Sh30 million, stamp duty arrears Sh21 million and retirees/deceased arrears Sh12 million.

Mayor Sam Okello said the budget had increased from Sh300 million to Sh1.7 billion.

The council intends to spend Sh681 million in all personnel related issues, which is 39.25 per cent of the expenditure. Rosana said this is within the threshold as per the budget guidelines, adding that this is less, given the fact that the council is allowed to spend up to 50 per cent on personnel.

Mayor Okelo said when he took over the leadership workers salaries were in 14 months arrears. “We have managed to clear the salary arrears and gave the workers an increment of 40- 60 per cent in 2010,” he said.

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