Nairobi News

HashtagHustle

City Hall loses Sh650m as workers suspend strike


City Hall lost more than Sh650 million in the 10 days of workers’ strike, officials have said, even as the salaries agency warns the county against implementing a proposed pay deal.

The county government’s cash payments, mainly market rates and parking fees, were the worst hit during the go-slow that was suspended on Friday pending further negotiations.

City Hall lost an average of Sh253,000 from daily parking as the revenues dipped from Sh1.3 million in January to an average of Sh700,000.

Pick-ups and lorries were also delivering fresh farm produce to markets like Marikiti without paying cess.

INTERNAL REVENUES

The collection hiccup put at risk the county’s quest to raise Sh15.21 billion in internal revenues this financial year.

“Due to the strike we are having to deal with an irrevocable daily revenue loss of about Sh65 million,” County Secretary Pauline Kahiga said in a letter to Labour and Social Protection Cabinet Secretary Ukur Yattani on Thursday.

The Salaries and Remuneration Commission (SRC) has warned that implementing the Collective Bargaining Agreement (CBA) with the Kenya County Government Workers Union would put financial strain on counties.

According to a report seen by the Business Daily, the salaries body maintains the deal would have a spillover effect on other counties, forcing them to breach caps on salaries and wages.

FINANCIAL BURDEN

The report says that for 31 counties whose data the SRC has compiled, an additional financial burden of Sh23.5 billion would result directly from increased salaries and wages resulting from pressure of implementing the Nairobi city CBA.

The over 13, 000 workers suspended the strike last Friday in a move that will save the county government from further revenue losses.