On Monday, the Nairobi City County government clamped vehicles and dumped garbage outside the Kenya Power’s Stima Plaza, in an apparent protest after the listed utility company disconnected power in several county offices.
- •Earlier, the city government had disconnected water and sewerage services to the utility firm’s headquarters, as the pending bills row evolves.
- •Nairobi owes Kenya Power KSh 3billion, accounting for the highest proportion of devolved units’ cumulative bill of Ksh 4.4 billion.
- •In turn, the capital city’s leadership says Kenya Power owes it KSh 4.83bn, for way leave fees, as the two entities escalate a tit for tat row over pending bills.
“Worringly, the [Nairobi City County] debt has increased by KSh 1.3 billion in the last two years,” Kenya Power said in a statement on Monday.
According to the utility firm, it does not owe the capital city anything. The company cited a provision in law that provides that public bodies cannot charge way leave or any other levies on public energy infrastructure without the consent of the Cabinet Secretary.
The Pending Bills Mess
As at 30th June 2024, counties reported accumulated pending bills amounting to Ksh 181.98 billion, representing an increase of Ksh 17.22 billion within a year. The increasing stock of pending bills in the County Governments is a threat to fiscal discipline and sustainability, especially for suppliers and pensioners.
Pension bills, including related penalties, have escalated to levels that pose financial risks to County Governments in meeting their financial obligations. As at 31st October, 2024, the pension pending bills owed to three pension schemes reported by the Retirement Benefits Authority amounted to Ksh 91 billion reflecting an increase from Ksh 73.4 billion a year earlier.
The Senate and Treasurer have both issued directives to curb the pending bills menace, but the effect has not been felt by suppliers whose bills keep piling up. Treasury initiated a transition from cash to accrual basis of accounting which is expected to gradually reduce the stock of pending bills while the Senate directed county governments to prepare a payment plan prioritising the payment of pending bills as a first charge on the cOunty Revenue Fund.
