City Hall wants Treasury barred from funding NMS

City Hall has moved to court seeking to stop Treasury Cabinet secretary Ukur Yatani from disbursing county funds to Nairobi Metropolitan Services (NMS).

In a petition certified as urgent, the county government through chief finance officer Halkano Waqo also wants the court to stop NMS from micromanaging its budgetary allocations.

The deed of transfer, moving four key functions from the county to NMS was gazetted on February 25. However, Employment and Labour Relations judge Hellen Wasilwa ruled last month that the creation of the agency violated the law and Constitution.

And now, Mr Waqo wants the court to stop the NMS and its employees from interfering with the City Hall budgetary allocations.

With the transfer, the national government was handed the responsibility of revenue collection and remitting all revenue accruing from the transferred functions. For purposes of general co-ordination of revenue collection. The Kenya Revenue Authority (KRA) was later appointed to be the principal agent for revenue collection.

In the case, City Hall said it cannot continue contracting with an entity adjudged to be an illegal entity.

Mr Waqo said the process leading to the gazettement of the Deed of Transfer was opaque, shrouded in mystery and clandestine.

“He further said there was no public participation in line with the Constitution.

He said the Public Finance Management Act vests the responsibility to monitor, evaluate and oversee the management of public finances and economic affairs of the county on the county treasury, not the NMS.

“If the implementation of the Deed of Transfer is not suspended, this application and the entire petition will be rendered useless and mere academic exercise,” said Mr Waqo.

The key functions Governor Mike Sonko’s administration surrendered include health services, transport service, public works, utilities and ancillary service as well as planning and development.

Last month, Justice Wasilwa suspended the decision, declaring the transfer null and void.

“In the circumstances, I exercise my discretion, I suspend the declaration of illegality above from taking effect for a period of 90 days in which period the first respondent (NMS) should be established by law and the instrument of its establishment made,” said the judge.