Local authorities with outstanding debts will not be awarded disbursements from the Local Authorities Transfer Fund (LATF). This is to stop them from diverting funds meant for development projects into salaries and other debts, says the Minister for Local Government, Musikari Kombo.
According to local authorities transfer fund requirements, a town council must prepare service delivery plan (LASDAP) before it can receive funds. Nairobi, has its 2005/2006 LASDAP posted randomly on walls as follows:
+ A1 Total allocation LATF 692 million
+ A2 Fuel levy (for roads) 300 million
+ B- Poverty reduction grant 25 million
B Estimated 2005/06 revenue 4.1 billion
– C debt resolution 380 million
– D1 est. 2005/06 salary 2.5 billion
– D2 est. councillor costs 81 million
– A2 fuel levy (for roads) 300 million
– D3 est. operations/maintenance costs 05/06 1.6 billion
– D4 poverty reduction grant 25 million
Money available for service delivery action plan 198 m (poverty reduction grant 25m)
= (Total envelope 223 million)
That notice invited Nairobians to submit their comments to the Town Clerk, and not surprisingly, a lot of them expressed a desire to see actual specifics of projects to be undertaken.
Replying in a paid advertisement in the newspapers of Feb 22, the Town Clerk listed some 62 projects now completed amounting to about 140 million shillings, to allay fears that the money is being misappropriated. The projects include purchase of computers (1m), construction of ngundu bridge embakasi (1m), construction ruai health centre (4.5m) water supply to utawala embakasi (3.9m), street lighting in California and biafra estates (1.9m), construction of matatu terminus @ kariokor market (5m), construction perimeter wall at pumwani dispensary (1.7m), rehabilitation of city market (5m), and construction of a public toilet @ riruta market (1.4m). Of the 62 projects listed, 9 have been to rehabilitate social halls, 7 to rehabilitate health centres, and 6 to rehabilitate roads and bridges.