Kidero grilled by Senators over county borrowing

Nairobi Governor, Dr Evans Kidero, was on Wednesday, April 19 put to task over a decision by his county government to borrow Ksh 298 million without seeking approval from the Nairobi County Assembly.

Appearing before the Senate Public Accounts and Investment Committee, the County Executive Committee Member for Finance, Gregory Mwakanongo, justified the move saying the law allows borrowing of up to 5% of county budget without such an approval.

“We are allowed to borrow 5% of our budget by law, and I’m suggesting I do that in my revised answer,” Mwakanongo told the Senate Committee.

However, while appearing before the same committee last month, the CEC said they borrowed the money to pay for insurance without approval due to the urgency of the matter, with the Senators now questioning why the change of statement.

Kidero urged the Senate Committee to act fast and ensure the national government pays Nairobi County huge debts they owe it and that amounts to Ksh 72 billion, saying it has contributed to the shortfall in revenue collection.

Kidero said: “The major component of that shortfall is the non-payment by the national government of monies it owes us.”

The chair of the committee, John Lonyangapuo, said it was inappropriate for the county to borrow without approval of the County Assembly.

“The law says borrowing is not allowed without approval of the County Assembly and the borrowed money must be returned within one year,” said Lonyangapuo.

The Nairobi Governor was appearing to respond to audit queries for 2014-2015 Financial Year.

Kidero has been ordered to appear before the committee on May 9, 2017.