Nairobi, 27th January, 2021 – This morning Nairobi City County Government (NCCG) led by Deputy Governor and Acting Governor, Ann Kananu Mwenda handed over pending bills files for contracts for the transferred functions from NCCG to Nairobi Metropolitan Services Director General, Major General Mohammed Badi at Charter hall.
Says Ms Kananu “We know that late settlement of debts attracts interest and penalties for respective suppliers. Additionally, when bills remain unresolved and unpaid for far too long counties lose their credibility with suppliers and contractors. Pending bills also exacerbate liquidity constraints among suppliers. This in turn has a ripple effect that has contributed to massive job losses.”
The DG and Acting Governor said that the decision was arrived at after the National Treasury recently requested the Office of the Auditor General to undertake a special audit in line with section 96 (3) of the Public Finance Management (PFM). As a result, Nairobi City County and NMS formed a committee to look into all the contracts and files of accumulated pending bills for 2018/2019 Financial Year.
Said a beaming Ms Kananu “Today we are happy to handover the pending bills files worth Kes 1.3B over to NMS for payment. I will task my finance team to adopt a phased approach to settling outstanding arrears, even if it means settling bills in installments in certain circumstances in order to restore liquidity for business owners. Top of my agenda is fostering a new spirit of co-operation, collaboration, partnership and mutual respect among all organs of Government, the County Assembly, Nairobi City County Staff, key stakeholders and other partners.”