Home News City Hall on the spotlight for misappropriation of funds on ghost projects

City Hall on the spotlight for misappropriation of funds on ghost projects

In the recently completed financial year, Nairobi county may have spent over Ksh 600 million on ghost projects.

The Controller of budget for the county government revealed the information through a report for the beginning of the 2019/2020 financial year.

The report further details how City Hall failed to present the list of initiated development projects despite Sh632.1 million going on development expenditure. Instead, it turns out most on the money went on miscellaneous activities like domestic travel.

“The total development expenditure of Sh632.1 million represented 5.6 percent of the annual development budget of Sh11.27 billion. The county has failed to provide a list of implemented development projects during the period under review,” read the report tabled before Nairobi County Assembly.

Increased travel allowances

In a strange turn of events, the amount for travel budget increased as compared to the financial year ending June 30, 2019.

Within the first half of the recently ended financial year, the amount for traveling increased to 337.9 million, a 114.7 percent increase. In the first half of the 2018/2019 fiscal year, Nairobi county spent Sh157.35 million.

The total amount represents 232.39 million spent by the county executive and 105.5 million used by the county assembly.

In reality, this total amount surpasses the total of what City Hall used for development projects in the capital.

During this time, the county government could only generate Sh 3.11 billion from its revenue collection.

The total shows a decrease of around Ksh 620 million from the cumulative amount for the same period ending the 2019 financial year.

Following the considerable misappropriation, Ms. Margaret Nyakang’ o, the Controller of Budget, has directed the County Treasury to implement and formulate measures to control expenditure and improve revenue collection.

The move will help kickstart significant development projects in the capital every quarter.

On a good note, the county government of Nairobi reduced its spending on compensating employees by 15.6 percent.

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