Budget increased by Sh53b to cater for pandemic, city
National Treasury has revised its budget estimate by Sh53.7 billion in the 2020/21 financial year to include Economic Stimulus Package during the Covid-19 crisis, with Sh26.4 billion allocated to the Nairobi Metropolitan Services (NMS) that has been cash strapped since it was established.
According to a letter addressed to National Assembly by the National Treasury, the amended funds will be used as the economic stimulus package.
Treasury Cabinet Secretary Ukur Yatani said the President had approved a post-Covid-19 economic stimulus package of Sh53.7 billion.
Yatani, who is seeking to amend the 2020/21 budget for State department for Interior, the Presidency and the National Treasury, further asked Parliament to include the budget estimates for NMS whose budget is estimated to be Sh26.4 billion.
“We request for inclusion of Nairobi Metropolitan budget estimates in the National Government budget under the presidency,” he wrote.
The NMS has been suffering cash flow issues after Governor Mike Sonko declined to assent to the Nairobi City County Supplementary Appropriation Bill 2020.
Sonko said he refused to sign the bill because it proposed allocations of funds to functions which had not been transferred to NMS.
Other funds requested by the National Treasury CS to be passed include Sh1.5 billion which will go to the Mukuru Renewal Project under NMS.
Other which are also included in the amendments are Sh4.55 billion transfer of funds for the leasing of motor vehicles for the State Department for Interior to the National Treasury, Sh1.35 billion for enhancement of operation and maintenance and development budget under the presidency.
Yatani said apart from the NMS and the stimulus package, some of the amendments will be funded through a combination of budget realignment, additional funding from development partners and mopping of surpluses from the parastatals.