This archive report was first published on 17 June 2020.
On June 17, 2020, Nairobi Metropolitan Service (NMS) received a significant allocation of Sh26.4 billion from the National Treasury, sparking controversy among Nairobi County Assembly Members (MCAs).
According to the MCAs, the allocation was made without their input, rendering it illegal. Budget and Appropriations Committee Chairman Robert Mbatia expressed his concerns, stating that the move has left the county assembly in total confusion.
Mr. Mbatia pointed out that the allocation of Sh15.95 billion from the county's equitable revenue share and Sh9.7 billion from the county's own-source revenue to NMS for the 2020/2021 financial year is a breach of the Division of Revenue Act.
He argued that national government transfers to Nairobi County should be done through the County Revenue Fund (CRF), where own-source revenue is also deposited. This means that all the Sh26.4 billion allocated to NMS should be done by the county assembly.
"The future looks bleak because the county's own source revenue will hardly hit Sh8.5 billion. If NMS is to get Sh9.7 billion from the own-source revenue and all the equitable revenue share, then even funding the remaining functions and the county assembly's Sh2.2 billion will be very difficult," said the Kariobangi South MCA.
His vice chairman, Patrick Karani, termed Mr. Yattani's allocation to NMS as an illegality which can easily be challenged in court.
Mr. Karani pointed out that according to the County Appropriation Act, funds due to counties should come from the CRF before being divided according to different allocations by the Division of Revenue Bill.
Embakasi MCA Michael Ogada, a member of the Budget committee, also expressed his concerns, stating that the confusion needs to be addressed before the county assembly passes the Finance Bill, 2020.
Nominated MCA Emily Oduor also expressed her concerns, saying that the Budget Committee is not sure whether to include the estimates that should go to NMS or not.
