The Nairobi County Assembly has raised concerns over a 2.1 billion shilling loan requested by the Nairobi City Water and Sewerage Company is accusing the County Government of Nairobi of flouting Public Finance Management (PFM) laws.
The water company is seeking Assembly approval for the loan, which has been negotiated with Laptrust Fund.
“There will be no rubber-stamping this time. They must explain why they want to borrow without following the laws. The PFM Act Section 142 is very clear that you can only borrow 5% of your recent collection, which translates to 600 million shillings,” said0 session chair Moses Ogeto.
County Finance CEC Charles Kerich faced scrutiny for approving the loan without adhering to Section 142 of the PFM Act.
“The buck stops with him. We don’t understand why Kerich allowed this to pass without following the laid-down laws. We shall not be used as puppets; our job is oversight,” Ogeto added.
Nairobi Water is seeking the 2.1 billion shilling loan to settle workers’ pensions amid the company’s ongoing debt issues.
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