Sh4.7b debt from defunct council haunts countyMombasa County is struggling to clear Sh4.7 billion in debts inherited from the defunct Mombasa Municipal Council.Officials say the debts amount to about 50 per cent of the county’s budget or the entire annual wage bill. The bills, some as old as 20 years, include Sh2.7 billion statutory deductions and amounts owed to suppliers and contractors. She said the defunct Transition Authority (TA) did not finalise its report on assets and liabilities of defunct local authorities to allow county governments to start paying inherited debts. Ms Mbaruk said the county government has written to the IGRC seeking guidance on how the huge debts inherited from the defunct local authority should be handled. Once finalised, the IGRC report is expected to go through several stages before the county government gets clearance to start settling inherited debts.

Source: Standard Digital March 23, 2019 21:07 UTC