Sonko:Kidero has Failed.

By Mike Sonko

Nairobi Governor Evans Kidero
Nairobi Governor Evans Kidero
Nairobi Senator Mike Sonko
Nairobi Senator Mike Sonko

My attention has been drawn to an opinion piece by Nairobi Governor, Dr Evans Kidero, saying he needs to be given more time before his performance as the capital city’s CEO can be judged. As the Nairobi Senator and therefore the person charged with providing oversight for how Nairobi is managed, I wish to respond as follows:

1. At least 30 percent of revenue collected and the total budgetary allocation from the Exchequer should go to development projects. We are not following that requirement. Nairobi has been listed among the bottom 10 counties in Kenya that spent most of its money last year on recurrent expenditure, and less than 10% on development. At this rate, how can we achieve the aspirations of the 4.5 million residents of Nairobi?

2. The latest report of the Controller of Budget covering the 2013-2014 Financial year points to fiscal indiscipline and outing of regulations on expenditure. More specically, the Controller of Budget pointed out that there is intermittent use of IFMIS and manual system to record accounting transactions. It also observed “persistent use of local revenue at source in contravention of Article 207 of the Constitution and the County Finance Management Act Cap 107 of 2012.” It also observed low absorption of development funds. Planned activities were not implemented, hence affecting service delivery to the public.
The Controller of Budget now requires Nairobi City County to fully adopt IFMIS in financial management for accurate reporting and enhanced accountability in the use of public funds, to ensure local revenue is paid into the Consolidated Fund as required, and address challenges in the procurement process to improve on absorption rate of development funds and ensure efficient service delivery to the public.

3. There are issues of corruption and governance that I have raised in the past that, if not addressed, will negate all the development targets we want to achieve.There are several companies of questionable integrity, some connected to the financial problems Mumias Sugar Company is facing, that have now pitched camp in City Hall to chase tenders. On February 10, 2015, I tabled several documents in the Nairobi City County Assembly that clearly showed conflict of interest by several people doing business in City Hall. The KPMG special audit on Mumias clearly captures this on pages 191 and 193.

They are: YH Wholesalers, The Cups Ltd, Loki Merchants Ltd, Lopiding Transporters Ltd, The Millenium Contractors Company Ltd, Otier Ltd, Lodwar Wholesalers Ltd, Quids Enterprises Ltd, Sifa Cleaning and Bins Services Ltd and Peposi Freight (K) Ltd.
a) YH Wholesalers is associated with businessman and Mumias Sugar Company contractor Yunis Ibrahim Khalif. He also happens to be the director of Alpha Grain Millers Ltd where the registered oces of Sifa Cleaning and Bins Services are also located, showing the link between the two.

b) Peposi Freight Kenya Ltd was registered on December 23, 2014 and the next day opened an account at Cooperative Bank, City Hall branch. Sh7.6 million was wired from the Nairobi County Government for services never delivered.

c) Adan Mohamed Ibrahim who is a director of Peposi Freight is also a majority shareholder and a director of Quids Enterprises Ltd alongside another director Joseph Kula Mato.

d) Joseph Kula Mato is also a director of and shareholder of Sifa Cleaning and Bins Services Ltd.

e) Joseph Kula Mato is also a director and shareholder of Quids Enterprises Ltd together with Mohamed Adan Ibrahim. Quids is contracted by the Nairobi County Government to collect debts on its behalf.

f ) Another director and shareholder of Quids Ltd is a company called Lopiding Transporters Ltd, a major sugar distributor under Mumias Sugar Company Ltd.

g) Lopiding Transporters Ltd shares the same post office box (69 Lokichogio) with another company called Loki Merchants. One of the directors of Loki Merchants is George Wainaina Njogu, the chief of staff of Nairobi County Governor Evans Kidero. This is conisict of interest that should have, but has not, been declared.

h) Peter Hongo, a former business development manager at Mumias Sugar Company is the general manager of Sifa Cleaning and Bins Services Ltd. The Nairobi City County has written a letter addressed to all residents of Zone 7 (Lavington, Kileleshwa, State House area, Milimani, Kilimani, Hurlingham etc) instructing them to recognize Sifa Cleaning and Bins Services as the authorized solid waste management collectors. Just last week, Nairobi county executive committee member for Finance Gregory Mwakanongo told the county Public Accounts Committee that the Nairobi County Government lost Sh500 million in a deal to transfer a Sh3.3 billion bank loan from Equity Bank to Kenya Commercial Bank.

To effectively fight corruption in the long-term, we must fight the impunity for corruption irrespective of the social and political status of someone suspected of having committed a crime. As the elected representative of the people of Nairobi to the Senate, I will continue to play my oversight role to keep the county government on its toes. I will do this even if it means going to court to challenge illegal and irregular decisions that remove money meant for development projects and allow cartels to take over City Hall.
Chat Conversation End

Sonko is the Senator of Nairobi City County

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