The report says only Ksh. 219,378,664 was received in respect of vehicle parking fees for the year ending 30th June 2021. The drop and low collection were attributed to non-gazettement of already identified prime parking areas, non-painting and demarcation of all parking bays and non-charging of parking fees in outlying sub Counties
Reports to the effect that Nakuru County Government’s new administration under governor Susan Kihika inherited a broken system have been confirmed by a recently released report by the Auditor General. The report for the financial year ended 30th June 2021 shows how property owners owed the County Ksh. 6,999,290,698 in the form of accrued land rates and there have been no efforts made to recover the outstanding amount, which is contrary to Section (157) (2) of the Public Finance Management Act, 2012.
The report further reveals that the county is owed in terms of uncollected rent arrears amounting to Ksh. 439,756,748. Again, there have been no efforts made by the management to recover the arrears. Further, it was observed that ninety (90) County houses in Molo Sub-County with annual rent revenue of Ksh. 741,132 were managed by National Housing Corporation as a result of Ksh. 30,460,177 debt owed to the corporation by the defunct local Authorities.
No efforts have been made by the County Government to take charge of these houses and recover the long outstanding rent. The report further reveals that the previous administration under former governor Lee Kinyanjui failed to maximize revenue collection on vehicle parking.
Only Ksh. 219,378,664 was received in respect of vehicle parking fees for the year ending 30th June 2021. The drop and low collection were attributed to non-gazettement of already identified prime parking areas, non-painting and demarcation of all parking bays and non-charging of parking fees in outlying sub Counties.
Further, the County Executive of Nakuru incurred an expenditure of Ksh. 5,878,455,127 on the compensation of employees representing thirty-nine per cent (39%) of the county’s total revenue of Ksh.15, 113,593,091. The expenditure exceeds the prescribed limit of thirty-five per cent (35%) on employee cost under Regulation 25(1) (b) of the Public Finance Management (County Governments) Regulation 2015.
In addition, an analysis of the June 2021 payroll revealed that two hundred and eighty-six employees were drawing a net salary of less than one-third of their basic pay. This is contrary to Section 19(3) of the Employment Act 2007 which requires the total amount of all deductions which may be made by an employer from the wages of his employee at any one time should not exceed two-thirds of the basic pay.
