The County Government of Nakuru is negotiating with various state corporations to settle debts amounting to billions of shillings owed to the devolved unit.
Governor Susan Kihika stated that her administration faces development challenges due to a lack of funds caused by the nonpayment of over Ksh 7 billion in land and property rates.
During a Senate committee session, Governor Kihika highlighted that Kenya Railways Corporation owes Nakuru County Shs4,322,543,954 and that the debt situation had reached a stalemate.
“No matter how much we push to have the debt cleared, they don’t appear to pay,” noted the Governor while responding to revenue arrears queries by the Senate’s Public Accounts Committee.
She revealed that the corporation claimed to receive little funding from the exchequer, making it impossible to pay rates and clear the debts it owes governments and suppliers.
Additionally, she revealed, that the corporation established in 1977 asserts that it no longer owns prime properties across the country that used to generate revenue.
The State Department for Urban Development is constructing a modern bus park on the corporation’s land in Ziwani, Nakuru City, to decongest the town and create an efficient transport system.
“Instead of the County paying rent, we are discussing whether Kenya Railways Corporation can discount the fees from the debt,” noted a hopeful Governor Kihika.
She added that the County had requested the national railway carrier to allocate a portion or portions of its land in the region for constructing markets and other amenities.
Nyandarua Senator John Methu and a member of the committee noted that plans are in place to consider rates and debts owed by state corporations during the budget-making process.
Governor Kihika also revealed that the embattled Pyrethrum Processing Company of Kenya, formerly the Pyrethrum Board of Kenya, owes the County Government of Nakuru Ksh 17.6 million.
“We are in discussions to see if we can use the company’s idle land, which is at risk of being grabbed, for use by youth and women groups to propagate pyrethrum seedlings for the County,” she stated.
Other entities indebted to the County include the Kenya Wildlife Service, with Ksh 3.76 billion, Keroche Breweries Limited, which owes Naivasha Water & Sanitation Company Ksh 11 million, the Catholic Diocese of Nakuru, owing Ksh 4 million, and the Kenya Farmers Association, with a debt of Ksh 2 million.
The Governor said that has sought the services of debt recovery agents, waived interest on arrears, and enhanced revenue collection teams for compliance in a bid to avert such a crisis in the future.
