Civic authorities reeling under the weight of a huge debt burden now have cause to smile. They will soon benefit from a Sh9.25 billion kitty to finance their operations.

The Government says the disbursement through the Local Authority Transfer Fund would supplement their other sources of income.

Nairobi council will receive the biggest chunk -- Sh1.7 billion -- just released Local Government figures for the 2008-2009 financial year show.

Services

The money will go towards financing its operations and improving services to the public. It is followed by Mombasa council, which has been allocated Sh537 million.

Other local authorities that will receive high allocations include Nakuru County Council (196 million), Nakuru council (180 million), Bungoma County Council (131 million), Eldoret council (141 million), and Kisumu council (184 million).

Others include Kwale County Council (130 million), Makueni County Council (146 million), Masaku County Council (100 million), Nyambene County Council (111 million), and Ol Kejuado County Council (121 million).

According to the figures, Chepareria Town Council in Rift Valley has been given the least amount of Sh3.6 million. Others are Funyula council (5.7 million), Sirisia council (6.3 million) and Sotik council (6.6 million), among others.

Lower debt

In a statement, Local Government permanent secretary Sammy Kirui said the cash, in combination with the other local funds, will assist local authorities to improve services to the public, improve financial management and lower their debt burdens running into billions of shillings.

According to a financial report released recently, the City Council is among the worst performing local authorities, requiring more than Sh30 million to help offset its debts.

The report detailing expenditure of the Local Authority Transfer Fund in the 2006/2007 financial year further says Mombasa council needs more than Sh50 million to keep its books in order.

Eldoret council, says the report, needs more than Sh29 million to sort out its books of accounts, while Nakuru County Council requires well over Sh26 million to pay its debts.

Reports indicate that the Nairobi council is broke and is seeking a bank loan of about Sh130 million to sustain staff salaries and councillors' allowances.

Mr Kirui said that each local authority must, however, submit its budget estimates for this financial year and a statement of receipts and expenditures, cash and bank balances.

Statements

The authorities, he added, must also submit statements of debtors and creditors, and abstracts of accounts for the last financial year.

At least 7 per cent of the total fund is shared equally among the country's 175 local authorities; 60 percent of the fund is disbursed according to the relative population size of the local authorities.

The balance is shared out based on the relative urban population densities. Local Authority Transfer Fund monies are combined with local revenues to implement local priorities.