Nairobi Governor Evans Kidero has termed the move to transfer Over Sh1 billion from its account to the Kenya Revenue Authority (KRA) as politically motivated and aimed at paralysing the county's operations.
The governor accused the taxman of colluding with the Central Bank of Kenya to frustrate his government.
I think it is part of the political machination. You will recall that some people had vowed to take Nairobi City County either by hook or crook.
"This is one of those moves to paralyse our operations," said Dr Kidero on Thursday as he addressed members of the Pubs, Entertainment and Restaurants Association of Kenya at Sirona Hotel in Nairobi.
He proceeded to hit at KRA for transferring the Sh1.17 billion despite an existing court order barring such a move.
He said the county sued Monday to get the KRA cited for contempt.
Dr Kidero said the Central Bank-KRA action had delayed the payment of the April salaries for county staff, adding that City Hall officials were looking for alternative ways to pay them.
The county has 13,000 workers, whom they pay a total of Sh1.3 billion monthly.
County Secretary Robert Ayisi, speaking to the Nation two days ago, said officials were exploring all avenues, including meeting with Treasury Cabinet Secretary Henry Rotich and taking legal action in an effort to get the transaction reversed.
He also said he had sent out a memo to workers over the delay.