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Nairobi Metropolitan Services (NMS) will now receive funds directly from the Exchequer after striking a deal with City Hall.

This is after the two entities signed a framework of transfer of funds developed by the National Treasury late last year, bringing to an end impasse over the release of funds to NMS.

The Ann Kananu-led City Hall and NMS have been embroiled in back and forth over funding of transferred functions with the stalemate often leading to delayed payment of salaries for staff seconded to NMS.

The tussle between the two administrations began with former Governor Mike Sonko refusing to release funds to Lieutenant General Mohamed Badi-led NMS citing lack of law to allow the same.

This led the National Treasury to develop a framework, in line with the requirement of the Deed of Transfer of Functions, to guide the funding of NMS, in November 2020.

The framework takes into account Constitutional and legal provisions as outlined in the County Allocation of Revenue Act, 2020 as well as the provisions of the Deed. However, it had not been effected as it was at a time when Mr Sonko was facing impeachment by MCAs.

NMS had at the time been unable to receive funding from the Nairobi County government for the four transferred functions of health, transport, public works, utilities and ancillary services, county planning and development services as a result of the lack of a legal framework to allow for the same.

“Governor Ann Kananu and Director General Mohamed Badi have signed a framework of transfer of funds between both entities at Treasury offices witnessed by National Treasury Cabinet Secretary Ukur Yatani,” read in part a statement by the Governor’s communication.

In September last year, Mr Badi’s request to the National Treasury to release the funds to pay the 6,852 county staff was declined by CS Yatani over the same legal hurdle.

In his response, the CS said there was no legal framework in place to facilitate such a transaction and that the funds can only be remitted to the Nairobi County Government (NCCG) Revenue Fund Account and not to NMS.

He pointed out that according to section 4 (2) of the County Allocation of Revenue Act (CARA), 2020 provides that each county governments’ allocation shall be transferred to the respective County Revenue Fund, in accordance with a payment schedule approved by the Senate and published in the Kenya gazette by the CS in accordance with section 17 of PFM Act, 2012.

Mr Yatani explained that specific tenets of the law made it illegal to approve such a transaction since there existed an unresolved dispute between City Hall and NMS on matters budgeting, oversight of NMS funds and secondment of staff to NMS.

https://www.businessdailyafrica.com/bd/news/counties/nms-now-to-receive-funds-direct-from-treasury-3661158

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