City Hall running on Sh21 billion deficit – Kidero

November 12, 2014 11:56 am
Nairobi Governor Dr Evans Kidero at a past function. Photo/ FILE
Nairobi Governor Dr Evans Kidero at a past function. Photo/ FILE

, NAIROBI, Kenya, Nov 12 – Nairobi Governor Evans Kidero has revealed that City Hall is currently running on a deficit of Sh21 billion while stating that much of the county government’s revenue goes towards the payment of salaries and outstanding debts.

Speaking during a meeting with all the sub-county administrators in 85 wards on Wednesday morning, the Nairobi Governor indicated that out of the Sh20 billion revenue collected annually, Sh15 billion is used to pay workers’ salaries while the rest caters for other expenses incurred by the county government.

Kidero said this leaves very little resources to cater for service delivery for Nairobi residents.

“We owe inherited debt from Kenya Revenue Authority (KRA) Sh2 billion. Compound interest for that debt is five percent per month which means we pay Sh100 million a month on interest. We owe Laptrust Sh6 billion and at three percent is about Sh180 million. We owe Lapfund Sh4 billion which at three percent is Sh120 million. So if you add interest and penalties alone it is Sh400 multiply it by 12 months and this gives us about Sh5 billion. If you add this to the Sh15 billion used to pay workers, this gives you Sh20 billion,” he enumerated.

“Our operational expenses are about Sh500 million and our recurrent expenses are just about the same and we need Sh10 billion to carry on our projects. If you add it will be Sh40 billion and if you minus 19 billion, that will leave us with Sh21 billion. So we are running a deficit of Sh21 billion. But ladies and gentlemen, yes we can still undertake our duties and we are not going to cry that we are broke,” he stated.

The Governor emphasised the need for all leaders at sub county level to strengthen their revenue collecting structures so as to improve their income generating capacities.

“I want you guys in your areas of jurisdictions – in you sub-counties and wards – to take stock of our income streams; rates, building permits, car parks and all those miscellaneous things that will give us income,” he said.

In the meeting, he further divulged plans by the County Assembly to debate and pass the Neighborhoods Associations Bill which fosters a close knit society knowing each other and further enhance security.

“It is going to be mandatory for all neighborhoods to have an association and it is going to be mandatory that everybody who stays in a neighborhood is registered in the association. So if someone moves in, you will know and you will also be aware if someone moves out,” he said.

He explained that the bill will enable other facets of the county government’s job easier.

“This will control the whole neighborhood, making it easy for land management, environment management and we will promote the ‘Know your neighbours’ initiative and this will ensure that security is enhanced within Nairobi,” he stated.

He also said that City Hall will be increasing the street lighting capacity of the City from the initial 26,000 to 56,000.

“We are turning Nairobi into a 24-hour economy and to this end, we are increasing its lighting capacity. We currently have 26,000 street lights and we are going to increase this to 56,000 lights. The first phase started with the rehabilitating of 26,000 lights and this will not only have the net effect of increasing security, but it will also ensure that our people do business much longer.”



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