In Summary

• The city reps says they will not rubber-stamp the request.
• The County Government has given a nod to the loan.

Plans by Nairobi City Water and Sewage Company to secure 2.1 billion shillings from Laptrust  is now dwindling after being hit by legal questions raised by Nairobi Assembly  MCAs.

Nairobi County Assembly Majority Whip Moses Ogeto says the water company do not have capacity to borrow the 2.1 billion shillings.

According to Ogeto the County Government entity flouted the Public Finance Management Act section 142 {b].

“No rubber-stamping this time round, they must tell us why they want to borrow without following laws. The PFM Act section 142 is very clear that you can only borrow 5% of you recent revenue collection which translates to 600 million shillings for Nairobi Water.” The session chair Moses Ogeto told journalists.

“The buck stop with CECM Finance and entire Nairobi Water board .We don’t understand why Kerich allowed such to pass without following the laid down legislations. We shall not be used as puppets ….our job is oversight.” Ogeto added.

County Finance Dep Nod

The CECM  for Finance Mr. Charles Kerich in a letter gave a nod to the loan request saying  his office  had no objection to the plans.

“We Confirm that the County Government has no objection to the efforts of the company to seeking the said financing. The debts to be used towards settlement of outstanding pension arrears with Local Authority Pension Trust. The Company has ensured adherence to the Public Procurement and Asset Disposal Act of 2015 with regard to the procurement of the service,” Kerich told the company in a letter dated  26th May,2023.

The company did not remit employees contributions to Laptrust which in turn accrued an interests of 1.2 billion shillings with another 937 million shillings actuarial deficit totaling to 2.1 billion shillings.

If secured ,it will help the company in settling  the outstanding workers pension.