Nairobi pending payments develop by Sh40bn in final 12 months of NMS

Nairobi Metropolitan Companies (NMS) Director-Normal Mohammed Badi. PHOTO | FRANCIS NDERITU | NMG

Nairobi county amassed Sh40 billion extra in pending payments within the final monetary 12 months when it was beneath the stewardship of the Nairobi Metropolitan Companies, inflicting money move points for its suppliers and contractors.

Newest knowledge from the Controller of Finances (CoB) exhibits that Nairobi’s pending payments jumped to Sh99.06 billion for the 12 months ended June 2022, from Sh54.32 billion a 12 months earlier including to the money flows of corporations and contractors which have executed enterprise with the county.

Nairobi’s share of the payments is 70 p.c of the Sh153.02 billion that devolved models owed corporations and contractors as at finish of the 12 months to June pushing them into cash-flow woes.

Counties owed corporations and contractors Sh96 billion on the finish of the 2020/21 monetary 12 months and the Sh57 billion surge in 12 months, highlights the continued disregard by the devolved models to pay for items and providers delivered.

“The county (Nairobi) failed to organize a passable cost plan for settling the pending payments within the present monetary 12 months. Through the interval beneath evaluate, the county treasury didn’t present a report on the settlement of pending payments as of thirtieth June 2022,” CoB Margaret Nyakango says within the report.

Kiambu county posted the second largest bounce in unpaid payments within the interval beneath evaluate after the arrears elevated by Sh2.37 billion to Sh5.87 billion.

The coastal county of Mombasa recorded a Sh760 million bounce in unpaid payments to shut the 12 months with Sh5.87 billion owed to corporations and contractors.

The rise in unpaid payments spotlight the disregard by counties to previous directives from the presidency and Nationwide Treasury to clear the arrears in a bid to ease cash-flow malaise within the non-public sector.

[email protected]