NMS suppliers, contractors to wait longer for Sh16 billion payments

State House Comptroller Katoo Ole Metito before the Public Petitions Committee at Parliament Buildings Nairobi on April 20, 2023, to answer queries regarding Funds Spent Contrary to Provisions of Article 223 of the Constitution. PHOTO | DENNIS ONSONGO | NMG

Contractors and suppliers of the defunct Nairobi Metropolitan Service (NMS) will wait longer to receive Sh16 billion after State House said it has no money to clear the pending bills.

State House said out of the Sh16 billion, Sh4.2 billion is owed to garbage collectors while the rest is distributed among firms and suppliers that undertook former President Uhuru Kenyatta’s flagship projects such as the renovation of Uhuru Park and Central Park, hospitals, roads and construction of small claims courts.

Read: Defunct NMS gets extra Sh3.2bn to clear pending bills

State House Comptroller Katoo Ole Metito said despite Parliament approving Sh2.91 billion under the supplementary budget to clear part of the debt, the Treasury had only released Sh411 million that has been paid out to 44 verified contractors and suppliers.

The House in March regularised the expenditure of Sh2.91 billion that was withdrawn under Article 223 of the Constitution.

The money was withdrawn from the Consolidated Fund days to the August 9 General Elections.

“Although Parliament approved Sh2.91 billion that was withdrawn under Article 223 of the Constitution, NMS only received Sh411 million,” Mr Metito told MPs last week.

“The balance of Sh2.5 billion that was withdrawn is yet to be received from the Treasury.”

The national government surrendered back to Nairobi County the functions of health, transport, public works, and planning and development after the lapse of the deed of transfer last September.

Mr Metito told MPs that the Sh2.91 billion was meant to clear pending bills owed to contractors and suppliers who built 19 hospitals in informal settlements and three small claims courts.

Read: Treasury allocates NMS Sh14 billion to operate until 2023

Contractors who constructed three small claims courts that have since been handed to the Judiciary were paid Sh200 million out of the Sh411 million released by the Treasury.

The balance of Sh211 million went to contractors and suppliers of medical equipment for the hospitals.

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