Nandi County Executive is seeking the Assembly’s approval to borrow Sh350 million.
The County Finance Team led by Chief Officer in charge of Finance Meshack Malakwen on Wednesday presented their submission to the Assembly in relation to a Cabinet Memo requesting the assembly to authorize the borrowing.
According to the County Finance Director Hellen Kemboi the short-term borrowing is to mitigate cash flow challenges facing the county treasury.
She said the loan will be used to pay staff salaries which have persistently delayed and that the borrowing will help cushion staff.
“The purposes of this credit facility is strictly salaries, to be able to cushion our employees because we don’t know when funds will be disbursed. Our employees are really suffering,” said Kemboi.
The loan will be mainly in the form of overdraft and will be incurred due to delays in the disbursement of allocations from the Treasury.
The County Attorney George Tarus said Section 107(3) of the Public Finance Management Act, 2012, provides for short-term borrowing by county governments.
“A county government may borrow only if the national government guarantees the loan; and with the approval of the county assembly,” Tarus quoted Article 212 of the Constitution.
The County Assembly is set to deliberate on the Cabinet Memo No. 002 of 2020.