Members of the Nairobi County Assembly (Nairobi MCAs) have approved a Sh1.7 billion monthly payroll facility, allowing City Hall to access funds from Sidian Bank to pay county workers on time.
The approval authorizes the Nairobi City County Government to use the bank facility to manage salary payments during periods of cash-flow delays. County officials said the arrangement will ensure workers receive their salaries even when revenue collections or transfers from the national government are delayed.
A county finance official told MCAs that the facility is designed to stabilize payroll payments.
“This is a short-term facility that will help the county manage its monthly payroll obligations.
It will ensure staff salaries are paid on time as we wait for revenue inflows,” the official explained.
The facility allows the county to borrow up to Sh1.7 billion each month and repay the funds once revenue is received.
Some MCAs raised concerns about the decision to work with Sidian Bank, pointing out that it is smaller than institutions that have previously handled county accounts. One MCA asked for more details on the agreement.
“We must ensure the county’s finances are handled transparently. We need clear information on the terms of this facility and how it will be repaid,” the MCA said during debate in the assembly.
Supporters argued that the payroll facility is necessary to avoid salary delays that could affect service delivery across Nairobi. Another MCA defended the decision as practical.
“The most important thing is to ensure county workers are paid without delays. If this facility helps stabilize payroll, then it is in the interest of the county,” the member said.
The new facility is expected to provide a safety net for salary payments while the county awaits revenue inflows, ensuring smooth operations and continuous service delivery across the city.
Tags
News