Nairobi governor Mike Sonko.[photo/citizentv]
Nairobi Governor Mike Sonko has filed a case at the Milimani law courts seeking to stop payments to all creditors.
According to the county, stopping payments will allow an audit into pending bills amounting to Ksh.60 billion.
“The county is willing to settle the pending decrees but needs time to pay after scrutiny, and ascertaining the status of the various payments,” reads the court documents.
According to Sonko, the county’s liabilities as at June 30, 2017, stood at Ksh.56 billion an amount which is inclusive of debts due to statutory bodies, suppliers and contractors, long term loans, contingent liabilities and employee benefits.
Sonko says Nairobi inherited these huge debts from the defunct City Council of Nairobi and the immediate predecessor which have significantly affected cash flow.
According to the court papers other debts arising from court cases makes a total sum of Ksh.3 billion.
Sonko says that the county is experiencing financial constraints and is not in a position to immediately pay in the current financial.