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The Office of The President, NMS Owe Contractors More Than Ksh 12.3 Billion

Statehouse budget controller Katoo Ole Metito has told a parliamentary committee that the office of the president owes suppliers up to 12.3 billion shillings, of which 11.8 billion shillings represent the bills and debts accrued by the defunct office of Nairobi Metropolitan Services (NMS), held by general Mohammed Badi serving while serving as NMS director-general after assuming the responsibility of transforming the capital city of Nairobi.

While appeared before the National Assembly Committee on Public Accounts, stated that the large chunk of the debt was birthed by the Nairobi Metropolitan Services Office after it inherited some of the initial debts to contractors by the Nairobi County government, this is after the then governor Mike Sonko had been impeached.

State House Controller Katoo Ole Metito appearing before the Public Accounts Committee (PAC) to answer to Auditor General Nancy Gathungu’s report for the Financial Year ended 30th, June 2023 at Bunge Towers, Parliament on November 18, 2024.

“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.

Katoo added that the non-payment of NMS bills was further caused by the low payment of revenues from the Nairobi County revenue coffers and the national treasury.

However, Metito stated that the pending bills totalling to sh94.8 million, had already been paid.

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.

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