Sakaja’s loan request for salaries draws ire from Nairobi MCAs for lack of details

Nairobi Governor Johnson Sakaja during a cabinet meeting at City Hall, Nairobi on January 7, 2024. (Nairobi County Government)

By Lucy Mumbi
Sunday, November 23, 2025

The call for scrutiny comes after City Hall moved its primary accounts to Sidian Bank, a shift that raised questions from MCAs and finance officers over its timing and necessity.

A proposal by the Nairobi County government to secure a short-term loan to settle staff salaries faced scrutiny from MCAs after details emerged that the motion lacked critical information, including the loan amount, repayment terms and the bank from which funds would be borrowed.

A letter from County Executive Committee Member for Finance and Economic Planning Affairs Charles Kerich, dated November 13, 2025, formally requested the County Assembly’s approval for the short-term loan to address delays in paying contractors and salaries.

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In the document, Kerich cited Section 142 of the Public Finance Management Act, 2012, noting that the borrowing was intended strictly for cash management purposes.

“The borrowing shall not exceed five per cent of the last audited revenues and shall be paid within a year from the date on which it was borrowed,” Kerich said, adding that timely approval was necessary “to avoid any disruption to County operations.”

During a plenary session, Majority Leader Peter Imwatok tabled a motion seeking the County Assembly’s approval for the loan but failed to provide specifics, prompting sharp questioning from MCAs on both sides of the House.

“Pursuant to Section 142 of the Public Finance Management Act, 2012, I beg to lay the following paper on the table of this County Assembly. This is a request for authority from Nairobi City County Assembly to borrow a short-term loan to settle salary and salary-related expenditure by Nairobi City County Executive,” Imwatok’s statement read.

MCAs expressed concern over the omissions, noting the motion did not indicate how much the county intended to borrow, the source of the loan, or the repayment schedule.

Ngara Ward MCA Chege Mwaura accused the Executive of attempting to misuse the powers of the Assembly.

“We don’t have the content in the statement. What are we passing? What is the exact amount that they want to borrow? What are the terms? We do not want to be reduced to conveyor belts,” Mwaura said.

Minority Leader Anthony Kiragu also warned the Assembly against being used to rubber-stamp incomplete proposals.

“I am requesting that you protect this House from bombardment with useless papers that do not follow the law. It is important that Finance Executive Charles Kerich attaches it with a nexus before bringing it to this House,” Kiragu said.

The Speaker said it would be up to MCAs to approve or reject the governor’s request once all missing information had been provided. Former Planning PS Irungu Nyakera criticised the move, arguing that the Assembly should have rejected the motion outright.

“The governor was asking for a blank cheque. This is how Nairobi has been piling up debts and pending bills. Zero governance, zero oversight and a system that keeps enabling reckless decisions at the expense of Nairobians,” Nyakera said.

The call for scrutiny comes after City Hall moved its primary accounts to Sidian Bank, a shift that raised questions from MCAs and finance officers over its timing and necessity.

Concerns have also been raised by the County Government Workers Union over repeated delays in salaries and statutory deductions, with the latest example being the October salary, which was paid on November 18, contrary to Governor Sakaja’s promise that county workers would not experience payment delays during his tenure.