Nairobi Governor Johnson Sakaja has defended the Sh43.7 billion drop in Nairobi County's pending bills before the Senate. He told the Senate County Public Accounts Committee that the pending bills had been reduced from Sh118.79 billion to Sh75.07 billion through verification and payment. Sakaja revealed that internal verification established that the reduction was not achieved solely through payments but also involved legal assessments, court-ordered adjustments, and verification of disputed claims.
Sakaja explained that the Sh118 billion in pending bills was inherited from his predecessors and that he had constituted a committee to undertake an internal verification of the entire amount before payments were done. The governor said that the verification established that the reduction was not solely through payments but also involved adjustments arising from legal assessments, suspended government-guaranteed loans, court decisions, and disputed claims. He told the Senate Committee that addressing the inherited debt required the establishment of a verification committee to scrutinize the entire outstanding amount and establish the validity of the claims.
The governor provided a detailed schedule accounting for the Sh43.7 billion pending bills reduction through adjustments and reconciliations. He said that Sh1.63 billion related to legal assessments, while Sh19.14 billion represented government-guaranteed loans whose servicing had been suspended due to a lack of supporting documentation and loan schedules. Additionally, Sakaja told Senators that Sh19.2 billion related to LAPFUND interest and penalties, which the County said had been reduced following a court consent that brought the claim down to approximately Sh8.2 billion.
Sakaja's administration has also strengthened the county's legal department to reduce expenditure on external legal services and protect public resources. He noted that through the reforms, Nairobi saved approximately Sh8.48 billion in legal costs over two financial years by expanding its in-house legal capacity, handling more litigation internally, and negotiating reductions in legal fees claimed by private advocates. According to the County Assembly's Justice and Legal Affairs Committee, of the 174 court cases concluded during the period under review, 84 were handled by the County's in-house legal team, with 47 determined in Nairobi's favor.
The Senate County Public Accounts Committee, chaired by Homa Bay Senator Moses Kajwang, commended the County for reducing its pending bills but asked the Governor to provide additional documentation supporting the payments and processes undertaken to account for the Sh43.7 billion reductions. Kajwang said that the committee requires further clarification on the verification exercise and the adjustments made to the outstanding debt.
Sakaja's efforts to reduce pending bills and strengthen the county's legal department have been seen as a positive step towards addressing the inherited debt and protecting public resources. The governor's administration has provided a detailed schedule accounting for the reduction in pending bills and has taken steps to prevent similar issues in the future. The Senate County Public Accounts Committee's request for additional documentation is a routine step in the oversight process.
The reduction of pending bills by Sh43.7 billion is a significant achievement for Sakaja's administration, which has been working to address the inherited debt and improve the county's financial management. The governor's efforts to strengthen the county's legal department and reduce expenditure on external legal services have also been commended. Key points include:
Key points
- The pending bills in Nairobi County have been reduced from Sh118.79 billion to Sh75.07 billion through verification and payment.
- The reduction of Sh43.7 billion was achieved through a combination of payments, legal assessments, court-ordered adjustments, and verification of disputed claims.
- Sakaja's administration has strengthened the county's legal department, saving approximately Sh8.48 billion in legal costs over two financial years.
