The Nairobi City County Assembly has approved Sh1.26 billion under the 2014/25 Supplementary Budget to clear outstanding debts owed to contractors and suppliers.
This allocation aims to alleviate the financial pressure faced by suppliers and contractors awaiting payments.
According to the Controller of Budget, the county’s pending bills have ballooned to Sh121.06 billion.
Wilfred Oluoch Odalo, Chairman of the Finance, Budget, and Appropriations Committee, highlighted the significance of this additional funding in addressing the county’s supply chain challenges, which rely heavily on timely payments.
Of the total supplementary budget, Sh513 million will be directed towards settling pending bills at the County Assembly.
Odalo further urged the county executive to prioritize payment to suppliers who have already completed their work.
The revised budget now totals Sh44.47 billion, an increase from the initial Sh43.546 billion.
Recurrent expenditure has risen by Sh3.09 billion, reaching Sh32.39 billion, while development expenditure has been reduced by Sh2.18 billion, falling from Sh14.3 billion to Sh12.077 billion.
The revised development budget now falls short of the 30% threshold set by the Public Finance Management (PFM) Act of 2012.
Key allocations in the supplementary budget include Sh150 million for emergency and disaster management, Sh400 million for the school feeding program, Sh604 million for solid waste management, and Sh300 million for the procurement of health commodities.
Additionally, the budget committee reinstated Sh200 million for the Ward Development Fund, which had been previously cut from the proposed estimates.
