The National Treasury has declined to release funds to the Nairobi Metropolitan Services to pay salaries to the newly created entity led by major General Mohamed Badi saying the funds can only be released to the National County Government Revenue Account.
Treasury Cabinet Secretary Ukur Yatani said he cannot release the money as there is no legal framework to back the move.
CS Ukur Yatani said according to the County Allocation of Revenue Act, county government allocations can only be transferred to the respective County Revenue Fund Account in accordance with a payment schedule approved by the Senate.
The CS insisted that funds cannot be transferred to NMS due to constant squabble between Badi and Governor Mike Sonko who ceded four crucial functions to the former.
“Section 4 (2) of CARA, 2020, provides that each county governments’ allocation shall be transferred to the respective county revenue fund, in accordance with a payment schedule approved by the Senate and published in the Kenya Gazette by the CS in accordance with Section 17 of PFM Act, 2012,” the letter reads.
“The above legal provisions, therefore, imply that equitable share allocation due to Nairobi City County Government, including monies for personnel emoluments, shall be transferred to NCCG Revenue Fund Account.”
Yatani was responding to a letter by Badi dated September 3rd requesting the National Treasury to release funds for workers’ pay.
Governor Mike Sonko is at loggerheads with NMS boss General Mohammed Badi over the control of the city after the government ceded key functions to the national government.
Over 6,000 staff who would now have to wait longer to have money in their accounts, were seconded to NMS after four key functions were handed over to the national government.
Currently, county doctors, who were absorbed by NMS after the transfer of the health function to the national government, are on strike over delayed pay, among other grievances.
On the other hand, City Hall maintains that it should be the custodian of the payroll given that county workers are employed by the Nairobi County Public Service Board and not the NMS or the Public Service Commission.
According to his letter, Yatani acknowledged a dispute that was declared by the county government in relation to budgeting, provision, and oversight of NMS funds and secondment of staff to the entity.