The Defunct Nairobi Metropolitan Services (NMS) Left Behind Ksh. 14 Billion In Pending Bills

The deal to construct and equip the 10 level 2 and 9 level 3 health facilities in Nairobi County at a contract sum of Ksh. 869,400,000 was awarded to city tycoon Richard Ngatia who is President of the Kenya National Chamber of Commerce and Industry (KNCCI)

Details have emerged of how the defunct Nairobi Metropolitan Services (NMS) left a pending bill of Ksh. 14,814,008,078 as of 30th June 2022. The NMS boss Mohamed Badi who enjoyed executive powers courtesy of former President Uhuru Kenyatta is said to have led a team that mismanaged funds from the exchequer.

During his tenure, he was so powerful to the extent that he even attended cabinet meetings despite not being a cabinet secretary. Sources told The Weekly Vision that Mohamed Badi was a former classmate of Uhuru Kenyatta. The sources well versed with the operations of NMS and how they secured services and failed to pay told us that in the financial years 2018/2019, NMS left pending bills of Ksh. 553,291,857, while in the financial year 2019/2020, the pending bills stood at Ksh. 267,696,314.

During the financial year 2020/2021, NMS also had pending bills amounting to Ksh. 1,361,463,344 and Ksh. 12,631,556,563 respectively for the financial year 2021/2022. All the pending bills were carried forward to the 2022/2023 financial year.  It is not known why NMS failed to settle bills during the years to which they relate.

It has also been discovered that the Ministry of Health entered into a contract for the construction and the equipping of 10 level 2 and 9 level 3 health facilities in Nairobi County at a contract sum of Ksh. 869,400,000.  The contract was to be implemented within 90 days. AMREF Health Africa had obtained a license as the procurement agent for the Ministry of Health, they then appointed a contractor connected to a city tycoon Richard Ngatia to construct and equip the 19 health facilities at a cost of Ksh. 900m.  Mr Ngatia is the president of the Kenya National Chamber of Commerce and Industry (KNCCI). Subsequently, Nairobi Metropolitan Services entered into a Deed of Assignment with the Ministry of Health for the construction of nineteen 19 health facilities in Nairobi County.

The procuring agent was paid the full cost of Ksh.869,400,000 for the construction of the 19 facilities, 4 health facilities namely Sinai, Pumwani, Majengo, Lucky Summer and Gumba/Mabatini were at 85%, 15%; 10% and 5% completion levels respectively by June 2022. Further, no contract extension or reasons for the slow progress was made public despite full payment of the contract sum.  Another white elephant project is the rehabilitation of Jevanjee Gardens Park. According to available records, NMS initiated the upgrading and maintenance of Jevanjee Gardens Park at an estimated cost of Ksh. 15m.

The works were to be done in-house by NMS and materials were procured for the project, it was to run for 4 months commencing on 25th February 2020.  However, by November 2022 it was discovered that the project was still incomplete despite NMS having procured materials, some of which are still on site and exposed to theft. As of now, the project is behind schedule.

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