Nairobi MCAs reject Sakaja's Sh44.46bn budget proposal, citing development cuts

Nairobi MCAs have opposed Governor Johnson Sakaja's proposed supplementary budget, which seeks to increase the total county budget from Sh43.56 billion to Sh44.46 billion.

At the core of their grievances is the reduction of the development budget from Sh14.26 billion to Sh12 billion, while recurrent expenditure rises from Sh29.3 billion to Sh32.39 billion.

The move has sparked outrage among the MCAs, who argue that prioritising recurrent expenditure over development undermines essential projects across Nairobi's 85 wards.

According to the MCAs, this shift directly contravenes the Public Finance Management Act of 2012, which mandates that at least 30 per cent of the county budget be allocated to development activities.

The proposed changes would leave the development budget at 27 per cent, which the lawmakers have demanded be corrected.

Concerns over WDF cuts

The situation has further escalated with the proposed Sh200 million reduction from the Sh1.9 billion Ward Development Fund (WDF).

WDF Acting CEO Eston on Wednesday struggled to justify the decision before the committee, prompting frustration from MCAs.

"How can the CEO come here totally unaware why this reduction is being made when he is the presiding officer over this fund?" Mountain View MCA, Maurice Ochieng posed.

The WDF is a critical programme that channels funds toward poverty alleviation and infrastructure development in Nairobi's wards.

Many MCAs fear that the fund's dwindling allocation will render it ineffective, further stalling key projects.

The Transport and Public Works sector has come under scrutiny for its budgetary proposals. Key allocations include Sh150 million for road equipment and Sh60 million for road maintenance, despite stalled projects and public dissatisfaction with the progress of road upgrades.

Additionally, MCAs have raised concerns over the allocation of Sh 510 million for road materials, an increase of Sh303 million, following revelations that materials purchased last year were stolen.

"This is the usual plan that the executive keeps playing with us by coming up with proposals aimed at enriching themselves," former Mayor and Baba Dogo MCA Geoffrey Majiwa warned.

Stalled Project, mounting pending bills

Going further, the ward reps have accused the governor and the finance department of ignoring sectoral recommendations and imposing self-serving proposals.

Projects such as the upgrading of the Drumvale-Sir Henry Ring Road in Ruai, initially budgeted at Sh137 million, face a Sh93.9 million cut, leaving contractors unpaid.

Furthermore, the County Assembly's development budget would drop from Sh 1.63 billion to Sh1.28 billion under the proposal, while recurrent expenditure for the assembly would rise by Sh259.96 million.

The Controller of Budget (CoB) has also highlighted significant lapses in Nairobi's fiscal management. According to the CoB, the county reported no spending on development programmes in the first quarter of FY 2024-2025, echoing similar findings from FY 2023-2024.

This means contractors have yet to receive payments, adding to Nairobi's mounting pending bills.

In the first quarter of FY 2024-25, the county received Sh5.45 billion, comprising Sh1.71 billion in equitable share, Sh2.26 billion in Own Source Revenue, and a balance of Sh1.48 billion carried forward from the previous fiscal year.

However, the MCAs argue that these funds are being mismanaged, leaving crucial projects in limbo.

Further, Governor Sakaja is facing a growing backlash from the assembly, with several MCAs accusing him of dishonesty and lack of commitment to previously agreed-upon projects.

Woodley MCA Davidson Ngibuini warned that the governor risks losing their goodwill if he continues down this path. "We had a caucus with the governor where he gave us his goodwill on projects, but it is seemingly not there anymore," he said.

MCAs are set to reconvene for a special sitting to deliberate on the proposals before the Christmas recess, signalling that the budget standoff is far from resolved.