Politics and policy
Nairobi County Assembly. The MCAs adjourned sittings for a week soon
after resuming from a one-month recess, following a standoff with the
Executive over the Finance Bill that threatens to paralyse revenue
collection. PHOTO | FILE
By KIARIE NJOROGE, gkiarie@ke.nationmedia.com
In Summary
The Nairobi County Assembly has adjourned sittings
for a week soon after resuming from a one-month recess, following a
standoff with the Executive over the Finance Bill that threatens to
paralyse revenue collection.
Members of the County Assembly threatened to shoot down the
Finance Bill if it is brought to the House and instead decided to go on
recess for another week until the amendments they want are included.
“The members are very hostile to the Bill because
of these issues so the Assembly had to be adjourned to next week,”
County Budget committee chairman Michael Ogada said.
The MCAs are demanding inclusion of Sh380 million
for their mortgages as an amendment to the Finance Bill and also want
the county to release Sh3 billion for ward development projects.
Mr Ogada said the Budget Committee would meet the
county treasurer Thursday in a bid to end the deadlock. The Bill’s
passage is key to giving the county government legal authority to charge
taxes.
Some MCAs on Tuesday urged Nairobi residents not to
pay any levies, claiming that it was illegal as the Finance Act 2013
had expired. But their position, however, is subject to mixed legal
interpretation.
Some have argued that Nairobi residents could move
to court to challenge taxes levied 90 days after passage of the
Appropriations Bill while others say that the Finance Act continues to
be in force until the current Finance Bill is passed.
The Public Finance Management Act states: “Not
later than 90 days after passing the Appropriation Bill, the county
assembly shall consider and approve the Finance Bill with or without
amendments.”
But according to constitutional lawyer Peter
Wanyama, the PFM Act is just a guide to the budget-making process and
does not impose penalties for non-compliance.
“The law does not envisage that there could be a
lacuna. The Finance Act has a transitional clause meaning it applies
until a new law comes into force,” he said.
Mr Ogada said MCAs are yet to get an official
interpretation from the Commission for the Implementation of the
Constitution (CIC) on the provision of the PFM Act.
“I got advice from a lawyer who told me that the
county is at liberty to continue using the old law but another told me
that this is opening the county to litigation,” Mr Ogada said.
Attempts to talk to CIC chairman Charles Nyachae
were not successful as his phone went unanswered and he did not respond
to our text message.
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