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Sonko wants more time to clear Sh60bn city debts, blames Kidero.

The Nairobi county government wants to be given more time to clear its Sh60 billion debts.

The county has sought a court order and says it is experiencing financial constraints and is not in a position to offset its debts in the current financial year because of limited and restricted sources of revenue. It wants the court to stop its creditors from demanding any payment until it audits all payment vouchers

Through lawyers Elias Mutuma and Thomas Letangule, the county said it is willing to settle its debts, which mostly arise from court cases and creditors, but needs time to scrutinise and ascertain the status of payments.

The county's liabilities as at June 30 last year stood at Sh56,516,365,308.32, which includes debts due to statutory bodies, suppliers and contractors, long-term loans, contingent liabilities and employee benefits.

Governor Mike Sonko (pictured) has blamed the defunct City Council of Nairobi and former Governor Evans Kidero for failing to streamline operations, hence significantly affecting cash flow.

'Bribery, fraud, stealing from taxpayers, coupled with the existence of ghost contractors, suppliers and workers, during the years of the defunct county councils and over the past five years, has made it impossible for my government to fulfill some of its mandates, including the immediate payment of debts,' Sonko said in court documents.

He has expressed concern that arresting and detaining county officials can disrupt City Hall's functions.

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Publication:The Star (Nairobi, Kenya)
Date:Jan 16, 2018
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