Staff at the Nairobi Metropolitan Services could go without salaries as the dispute between the NMS and Nairobi County escalated.
The over 6,800 staff, taken from Nairobi County Government, will wait longer for their salaries. This is after Treasury CS, Ukur Yatani declined to release funds to the NMS. This is pending the resolution of a dispute between NMS and Nairobi Governor, Mike Sonko.
No legal framework for transaction
In the letter to NMS Yatani said that a legal framework to facilitate such a transaction did not exist. Instead, they could only remit the funds to the Nairobi County Government (NCCG) Revenue Funds Account.
Section 4(2) of the County Allocation of Revenue Act, 2020 speaks on the matter. It states that each county governments allocation should pass through the respective County Revenue Fund.
“The above legal provisions, therefore, imply that equitable share allocation due to Nairobi City County Government, including monies for personnel emoluments, shall be transferred to NCCG Revenue Fund Account,” Yatani said in the letter to NMS. This was in response to a letter by NMS Boss, Badi on September 3rd. Badi had requested for the Treasury to release funds to pay the 6,852 county staff under NMS.
Thus, it would be illegal for his office to approve of the transaction as long as the dispute with City remained pending.
Nairobi County fighting back
Mike Sonko signed over several functions from the Nairobi County to the NMS early this year. According to the President, the NMS would ‘help’ in the running of Nairobi. However, the NMS is an illegal entity, according to several courts.
Ukur Yatani said he would wait for the resolution of the dispute before releasing the funds.
“Given the above legal provisions and the ongoing negotiations, the National Treasury awaits further guidance from the office of the attorney general on the way forward on the above issues.” He said.