Sonko seeks to freeze payment of Sh60 billion to creditors

The Nairobi County government has gone to court to temporarily stop all payments to its creditors amounting to nearly Sh60 billion.

In case documents filed on Monday, the county and Governor Mike Sonko claimed that his office has huge amounts of accrued debts from previous administrations, which cannot be settled owing to governing laws on appropriation of funds before use.

While blaming on Dr Evans Kidero’s tenure as well as the defunct Nairobi City Council for incurring the said huge debts which now have accrued interests, governor Sonko said that his administration is also not well furnished with the status of payment of the pending decrees.

Through lawyer Elias Mutuma, Sonko said various creditors have sought to attach the county’s property and arrest warrants for some of the county officials have been issued yet his office is the custodian of public property.

“The county is caught up in a situation where it is not able to take appropriate legal actions in the interest of the public and prudent use of public resources for lack of express powers to do so,” said Mr Mutuma.

CREDITORS

While promising that the county intends to settle the said debts amounting to Sh 57,694,204,678 in six months’ time, he said that there was need for an internal audit to be conducted first so as to protect public property.

“The Nairobi county government is experiencing financial constraints that have made it difficult for it to meet its monthly obligations as well as settle debts by its predecessors and particularly the decretal sums issued,” said Mr Mutuma.

The County’s Chief Finance officer and the Acting County Secretary are some of the officials said to have warrants of arrest for civil jail issued against them.

Case documents show that the county owes Kenya Revenue Authority Sh 3,922, 081,364.52, Kenya power Sh393, 066,405.70, water bill of Sh94, 210, 222.89, suppliers and contractors a total of Sh 3,787, 610,031.42 in the list of creditors.

Several loans and employee benefits for retirees as well as deceased also form part of the debt.

As at June 2017, the Nairobi county government’s liabilities stood at Sh 57, 694, 204,678.96.

The Attorney General has been listed as an interested party in the case that seeks a moratorium.

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