Why Nairobi County budget is in limbo

Nairobi County Assembly has ordered the republishing of the county’s Appropriation Bill, 2017 which could render the devolved unit’s 2017/18 budget null and void.

The assembly has also faulted the committee executive for finance Gregory Mwakanongo for the passing of Sh35.9 billion 2017/18 budget un-procedurally.

The budget could be rendered null and void since the executive published the Nairobi City County Appropriation Bill, 2017 before the passing of the 2017/18 budget estimates.

However through communication to the chair, speaker Alex Ole Magelo has ordered that the Bill be republished in accordance with Public Finance Management Act, 2012 section 129(7).

“Upon approval of the budget estimates by the county assembly, county executive committee member for the finance executive shall prepare and submit a County Appropriation Bill to the assembly of approved estimates,” reads Section 129(7) of the Act.

The County Government’s Sh35.9 billion 2017-2018 budget was un-procedurally passed after county treasury published the Appropriations Bill, which is meant to authorise expenditure, before MCAs approved the budget estimates.

It was published on April 4 before the assembly had even passed the budget estimates for the financial year 2017/18.

The assembly considered and passed the report of the select committee on finance, budget and appropriation on the submitted budget estimates for the 2017/18 budget on April 5 and passed the Nairobi City County Appropriation Bill, 2017 a day later.

“There was no authority from the County Assembly for the decision to publish the Appropriation Bill which as shown earlier should be entertained once estimates have been passed,” said Ole Magelo.

Mr Ole Magelo has blamed the finance department for contravening the Public Finance Management Act which requires the county executive member for finance to submit budget estimates and other documents to county executive committee for approval before publishing an Appropriation Bill.