Presidency, defunct NMS owe suppliers Sh12 billion

State House Comptroller Katoo ole Metito has informed Parliament that the Executive Office of the President owes suppliers Sh12.3 billion, of which Sh11.8 billion represents bills accrued by the defunct Nairobi Metropolitan Services (NMS).

Metito, who appeared before the National Assembly Public Accounts Committee yesterday, explained that the debt was primarily due to NMS assuming liabilities previously belonging to Nairobi County Government after it took over certain functions.

He added that the non-payment of the NMS bills was mainly caused by inadequate exchequer disbursements from both the Nairobi County Revenue Fund and the National Treasury (Consolidated Fund).

However, Metito noted that pending bills totalling Sh94.8 million had already been cleared.

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“The Sh345.3 million owed by State House and Sh155.2 million owed by the Cabinet Affairs Office were not paid due to inadequate exchequer provisions. However, I would like to confirm that the pending bill for State House has been fully settled, and Sh68.5 million for the Cabinet Affairs Office has been cleared,” said Metito.

He further explained that the Ministry of Health had entered into a contract for the construction and equipping of ten Level 2 and nine Level 3 health facilities in Nairobi county, with a contract sum of Sh869 million. The project is to be completed within 90 days, with Amref Health Africa acting as the procurement agent for the construction and equipping of the 19 health facilities.

As of August 15, 2023, Metito said, eight Level 3 facilities and eight Level 2 facilities had been completed and were operational. The remaining facilities have been completed and are only awaiting connections for sewer and electricity.

He also informed the committee that NMS,  through one of the transferred functions, the Directorate of Energy Reticulation and Public Lighting, was mandated to improve public lighting in Nairobi county. This was due to the absence of established contracts to deliver services at the time.

“It is important to note that the improvement of public lighting was necessary to replace the old high-pressure sodium lights along the Thika Superhighway. These were yellow, dim, and some were non-functional due to age,” Metito said.

Metito further confirmed that NMS had entered into a contract with China Roads Corporation for the water and sewer extension and lighting projects in various Nairobi areas including Dandora, Kangemi, Kawangware, Dagoreti Corner, Waithaka, Riruta, Kibera, Korogocho, Mathare, Zimmerman, Thome, Githurai, Mwihoko, Kasarani and Mwiki. The contract sum for this project was Sh4.4 billion, with Sh1.6 billion paid so far for the certified work completed.

Additionally, Metito stated that NMS had undertaken to upgrade and maintain Jeevanjee Park at an estimated cost of Sh15 million. The work was to be carried out using NMS’s internal capacity, with materials sourced from central stores.

The park was earmarked for maintenance under the Kazi Mtaani programme.