Kidero petitions Senate over Sh62bn owed to City Hall

The Nairobi County government has petitioned the Senate over a Sh62 billion debt owed to City Hall by the national government and its organs in land rates and parking fees.

The petition by Governor Evans Kidero through a letter dated June 30, 2016 to the clerk of the Senate wants the House to intervene on the accumulated debt saying its finances are strained.

“The senate should facilitate structured negotiations between the Nairobi County and the Ministry of Defence and other concerned National Government Ministries towards ensuring payment to the city of the sum owed to it of Sh61.5 billion,” read the petition.

In the petition the county government said the highest debt by the Ministry of Defence of Sh60.2 billion was incurred in 1997 when the defunct council purchased land measuring 3,078.12 acres from Kayole Estate Limited.

The county boss explains that the DOD applied to be allocated 988 acres of the said land with the condition that the department pays the council a stand premium of Sh40 million within 30 days of the said allotment.

In the petition, Dr Kidero said the DOD took possession of the entire property without paying the standing premium to the council.

“Consequently the then Nairobi council filed a suit against DOD as well as the Attorney General and the Minister for State of Defense and demanded a compensation in sum of Sh61.5 billion being the commercial value of the land,” states the petition.

The governor, through his communication officer Walter Mongare, lashed out at Interior Cabinet Secretary Joseph Nkaissery for saying that the government will not pay the county the money owed.

"We are a serious government and will not be involved in a circus by the national government; let them pay us our money,” said Mr Mongare.

He has also said the county will crack down on the national entities and withdraw their services if the debt is not cleared.