City Hall vows to recover debts as it unveils plan for 24-hour economy

The Nairobi City Council will chase its debtors to recover Sh4.1 billion to meet its financial obligations which stand at Sh15.4 billion.

Speaking at Nairobi Charter Hall during the council’s budget presentation on Thursday, Town Clerk Roba Duba said they must find a way of bridging the gap to deliver services to city residents.

“However, we must not forget that we are owed more than Sh100 billion by various debtors,” said Mr Duba.

He noted that failure by the government and its agencies to clear debts they owe the council was undermining efforts to offer crucial services to city residents.

Negotiation is in progress with some of these agencies.

“Your worship take cognizance that the Department of Defence owes the council about Sh60 billion, KBC Sh258 million and Kenya Cultural Centre Sh297 million among others,” Mr Duba said.

This being the last budget read before the implementation of a devolved government structure, the council’s Finance chairman, Mr Michael Ogada, said they planned to make Nairobi a 24-hour economy.

The total budget for the year 2012/13 amounts to Sh15.4 billion. The council intends to collect Sh4.4 billion from the Central Government and Sh11 billion from its own collections.

“The main sources of revenue to finance the budget will be as follows; Land rates - Sh2.8 billion, business permits - Sh900 million, parking fees - Sh1.4 billion, billboards and advertisements - Sh900 million and Sh3.2 billion from other collections.” Said Mr Ogada.

“Receipts from Central Government include; Local Authority Transfer Fund - Sh4 billion, Road Maintenance Levy Fund - Sh250 million, Cash In Lieu Of Rates - Sh1 billion,” said Mr Ogada.

The City Council claimed it has a debt of less than 17 billion. “If our debtors paid at least five per cent we should be able to settle our debts,” he added.

Mr Ogada said councillors would be given Sh2 million for retirement.

The Municipal Council of Nakuru unveiled a historic Sh1.3 billion budget for the financial year 2012/2013.

The fiscal estimates announced at the council plenary hall promised residents a basket of goodies including better roads, improved healthcare, and security through a Sh28 million street lighting project.

Speaking while presenting the budget, Finance Committee chairperson Rose Lai said the civic authority was determined to fight poverty in the town.

“We have allocated massive capital allocations for maintenance and capital projects to the tune of Sh397 million in support of this theme,” Ms Lai said.

The County Council of Nakuru allocated Sh195 million for completion of stalled projects in the next financial year.

Finance chairman Paul Chebor said there were about 100 projects in various stages of completion when he delivered the budget estimates for the council. The council covers Molo, Rongai, Naivasha and Subukia constituencies.