Home Business City Hall in Sh1.07bn debt swap talks with NSSF, Kenya Power

City Hall in Sh1.07bn debt swap talks with NSSF, Kenya Power


Economy

City Hall in Sh1.07bn debt swap talks with NSSF, Kenya Power


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An aerial view of Nairobi City Hall. FILE PHOTO | NMG

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Summary

  • City Hall has opened talks with Kenya Power and National Social Security Fund (NSSF) to swap a Sh1.07 billion debt with un-paid rates in efforts aimed at avoiding legal tussles.
  • The county disclosed that it will negotiate with Kenya Power to swap a Sh691.58 million electricity bill with money due for wayleave charges from the power distributor.
  • City Hall is also at advanced stages of negotiations with the NSSF to swap its Sh381.16 million unpaid statutory deductions with rates that are due from the State-run pension scheme.

City Hall has opened talks with Kenya Power and National Social Security Fund (NSSF) to swap a Sh1.07 billion debt with un-paid rates in efforts aimed at avoiding legal tussles.

The county disclosed that it will negotiate with Kenya Power to swap a Sh691.58 million electricity bill with money due for wayleave charges from the power distributor.

City Hall is also at advanced stages of negotiations with the NSSF to swap its Sh381.16 million unpaid statutory deductions with rates that are due from the State-run pension scheme.

Kenya Power owes City Hall Sh856 million in wayleave charges that have not been paid for years. City Hall, however did not disclose the rates due from NSSF for its property in the capital.

“The county is in negotiation with Kenya Power and Lighting Company to swap its debts against wayleaves owed to the county,” City Hall says in its latest Debt Management Strategy report.

Kenya Power in 2017 lost its bid to avoid paying City Hall Sh605.6 million for poles and wayleave paving the way for the county to collect the money.

The electricity distributor had argued that it was the responsibility of the central government to make such payments.

City Hall is currently grappling with debts, unpaid statutory deductions and bills for contractors amounting to more than Sh76 billion. The county government says that it inherited some of the debts ftom the defunct City Council of Nairobi.

The county reckons that debt swap is a key plank of its efforts to reduce its liabilities amid a perennial cash crunch and high wage bill.



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