30 June 2012

Kenya: Nyeri Defaulters Leave Council Sh55.6 Million Short

NYERI Municipal Council will be short of Sh55.6 million in the next financial year. Reading the 2012/2013 budget speech at the Nyeri town hall yesterday, finance chairman Patrick Mwangi Kiago said the council expects a total revenue of Sh366.3 million against an expenditure of Sh421.9 million.

However, Kiago said they will recover some funds from land owners who have not been paying land rates. He said the council proposes to finance the deficit by auctioning plots with accumulated land rates arrears, following up on unpaid contributions in lieu of rates and way leave fee debts, and implementing the new valuation roll. "The land rates defaulters currently owe the council over Sh400 million. The amount could have gone to provision of service for the betterment of the welfare of residents," he said.

Meanwhile, the Nyeri County Council will also operate with a deficit in the next financial year. Speaking at the council chambers in Ruringu yesterday, finance chairman Joel Maina said the council expects an income of Sh345.9 million and an expenditure of Sh368.5 million, which will result in a budget deficit of Sh22.5 million.

However, council chairman Wachira Ken said the government owes the council more than Sh100 million, which, if paid, will help cover the deficit. Ken said the council, which has been ranked 10th best among all local authorities, has been operating without debt since last financial budget after it paid Sh40 million owed to former teachers.

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