Treasury CS Ukur Yattani declined a request to release money to pay salaries to the Nairobi Metropolitan Services (NMS) staff, arguing that there was no legal framework in place to facilitate such a transaction.
In a later addressed to NMS Director-General Mohamed Badi, dated October 21, the CS detailed the specific tenets of law that made it illegal to approve the disbursement.
"Each county government's allocation, under subsection (1) of the County Allocation Revenue Act (CARA), shall be transferred in the respective County Revenue Fund in accordance with a payment schedule approved by the Senate and published in the gazette by the Cabinet Secretary in accordance with section17 of the Public Finance Management Act, 2012," reads an excerpt from the letter.
The CS maintained that until the matter is resolved, the National Treasury cannot issue funds to them directly
"The National Treasury awaits further guidance from the Office of the Attorney General on the way forward on the above issues," he added.
He then reminded the NMS boss that parties to the Deed of Transfer of Functions from the Nairobi City County Government to the National Government entered into an interim settlement agreement as an expression of good faith to the amicable resolution of matters in dispute.
However, the tabled issues included budgeting, provision & oversight of NMS funds and secondment of staff to the NMS.
Following the latest directive, NMS salaries can only be deposited into the County Governments coffers under Governor Mike Sonko, unless the Attorney General responds with an unorthodox solution.
The rivalry between Sonko and Badi reached fever-pitch in June 2020, with the Governor moving to court to express his intention to pull out of the agreement that saw NMS take control of key operations of the city.
“I’m not scared by the Governor’s move to head to court. For us at NMS we are proud of the services we are delivering to Nairobi residents to improve their livelihoods,” said Badi.
“It is not our work to go to court. The Office of the Attorney General will represent us (NMS) and we shall follow directions from the National Government,” Director-General Badi stated at the time.
