City Hall will have to pay over Ksh3 billion that they owe to contractors and suppliers. The process of clearing the bill begun after court allowed for the use of Ksh37.5 billion budget for the county.
Nairobi City Hall was not able to use the funds to pay their contractors and suppliers following the refusal of former Governor Mike Sonko to sign warrants. Sonko had gone to court to block the implementation of the funds to the county.
Acting Governor Benson Mutura however signed the warrants for the release of the funds the same week he was sworn in.
Similarly, City Hall has set aside a budget of Ksh3 billion that will cater for pending bills for contractors and suppliers.
Mutura says the National Treasury will pay the garbage contractors and small scale traders that are on the top list of those they owe money.
Similarly, garbage contractors had put down their tools after the county refused to pay for their services for close to a year. This led to an accumulation of their pending payment to Ksh1 billion.
Additionally, suppliers are owed less than Ksh5 million while other contractors are owed over Ksh600 million.
Benson Mutura says they have begun the process of paying the contractors and the money should be released as the week ends. Currently, they are working on who they will pay first accordingly.
According to reports, Nairobi County has Ksh10.67 billion of bills that are yet to be paid. In addition, an amount of Ksh3 billion was paid to KRA for VAT and PAYE and Ksh1.1 billion was paid to contractors and suppliers.
Meanwhile, the city is filled with garbage since the garbage contractors are yet to be paid.