Governors want State to offset inherited debts

By Silah Koskei and Osinde Obare

Debts incurred by the defunct municipal councils in the North Rift are threatening to cripple the operations of county governments, with governors asking the Transition Authority for help to offset them.

Trans-Nzoia County governor Patrick Khaemba inherited a debt of Sh1 billion from the former Kitale Municipal Council.

The former civic body’s operations were grounded after it missed allocations from the Local Authority Transfer Fund last year over the debts, which were blamed on massive corruption.

According to official records the former civic body owes various government parastatals, private companies and individuals millions of shillings. The body is also owed a total Sh400 million by rent and rate defaulters.

The council was reportedly unable to pay its workforce because revenue collected ended up in the pockets of a few individuals.

Radical changes by Khaemba has yielded fruits with the revenue base rising to Sh1 million daily, up from Sh 300,000. Khaemba ordered a shake-up at the revenue department and changed revenue receipts.

“I want to make Trans Nzoia a corruption-free zone. Those who used to steal from their offices should reform,” he warned.

Khaemba however said the National Government should provide direction on how inherited debts should be settled.

“We cannot carry the sins of others. This will eat into the money given to us for development under the new system,” he said.

West Pokot governor Simon Kachapin revealed they have an outstanding debt of Sh50 million left by the Municipal Council, a sum which he says should be cleared by the National Government.

Kachapin said former employees of the council are demanding payment of their dues by the new county government.

“Nine former councillors who worked for Chepareria Municipal Council have been asking for their unpaid dues yet we don’t have a clear mechanism on how to pay them,” he explained.

Uasin Gishu County has also inherited Sh659 million debt from former municipal council. County governor Jackson Mandago said they have factored Sh150 million in the budget estimates to offset salaries and legal fees for this year’s financial plan.

It is not all grim though as Elgeyo Marakwet governor Alex Tolgos said his county does not have arrears to settle after the local authority cleared the outstanding debts.

Tolgos says the National Government owes the county Sh383 million collected through forest rates.

His Turkana counterpart Josphat Nanok has faulted the Transition Authority for not auditing municipal councils before transferring the functions to the county governments.

“The Transition Authority should have conducted an audit before handing over to the counties because the huge debt were incurred by other officials,” he stated.

Nanok said it is the mandate of the National Government to offset debts left by former councils.

“Directing us to pay debts and salary arrears we’ve just inherited is overburdening the counties, thereby hindering services to the electorate,” he said.