Storm over new garbage collector, Green Nairobi, as MCAs raise questions over ownership

The announcement by the Nairobi City County Government that garbage collection in the capital will shift to a new private company, Green Nairobi, has sparked a storm with questions being raised over its legality, financial transparency, and the impact on private contractors.

The move that City Hall says is aimed at getting rid of cartels that have had a stranglehold on the sector for long, has, however, raised questions regarding why public participation was never done before the company was registered.

Members of the Nairobi County Assembly have also raised questions on why the setting up of the company was done without the consulting them.

Kariobangi North MCA Joel Munuve says the lack of consultation with Nairobians by the County government is a major oversight as they are the ones who will be receiving services from the company.

According to the MCA, the setting of the company was pre-meditated way a long time ago, claiming the shareholders and directors are Governor Johnson Sakaja’s allies and that it is not a aimed at finishing cartels in the environment sector but creating an even bigger menace.

Munuve also claims that the last Cabinet reshuffle by Sakaja was part of the strategy in forming the company using his friends.

“What the governor has done is kill one cartel to create a bigger one. The creation of the company was all premeditated because when you even look at the cabinet reshuffle that was done last, his friends were moved back to the sectors that are critical in the formation of the company (Environment and Finance),” Munuve stated.

He adds that the delay in confirmation of the Green Army employees by the county is a reflection that the Sakaja-led administration is more focused on bringing more people into the company, increasing the menace of ghost workers in the city government.

“With Green Nairobi Company coming in, there shall be an increase in ghost workers, even as you can see, the confirmation of Green Army employees has been delayed because of that. Is Sakaja making Nairobi work or making a cartel?” he questioned.

“If it is paying garbage contractors, they only pay those close to power, especially the State House, while the Common Council contractors, who even take loans to get the contracts, are frustrated with pending bills and 20 per cent cuts as ‘return for winning the contracts’, Munuve added.

Kileleshwa MCA Robert Alai, on his part, states this is not the first time the county is illegally privatising services without the involvement of the Assembly.

According to the legislator, the County Assembly is part and parcel of the devolved unit, hence such crucial matters must be done in consultation with lawmakers.

He accused the Assembly leadership of laxity on oversight, as he adds that the MCAs cannot question something as the leadership bars them.

“There is the question of the legal formation of the company. The Assembly is part and parcel of the county, and they ought to have been consulted by it being brought to the plenary first. There is the laxity of leaders of the assembly, both the majority and minority, as they do not allow members to properly oversight the executive,” Alai stated.

Alai adds that there needs to be a change in polices to end cartels in the environmental sector and not the formation of a company.

“The cartel is huge and cannot be ended by forming a company. That is even expanding it more. What Nairobi needs to do is change policies in the Environment sector and go back to providing services to its residents. Some services, such as garbage collection, ought not to be expensive,” he adds.

The governor has, however, defended the formation of the company, previously saying it will operate like the Nairobi Water and Sewerage Company to enhance efficiency and kick out private companies profiting at the expense of service delivery.

His remarks were supported by the Assembly minority leader and Waithaka MCA Anthony Kiragu, who stated that the company was formed legally through the Nairobi County Corporation Act 2019, which was passed by the Assembly.

Kiragu states that there needed not to be any consultations from the legislators as the Cooperation Act for 2019 stipulates clearly what needs to be done.

“No consultations were needed from the Assembly. The governor simply used the Nairobi City County Corporations Act 2019. And the environment sector, just like water and Sewerage, has become so big that it can no longer be a department. The formation of Green Nairobi is timely and effective,” Kiragu stated.

The minority leader affirmed that the Green Army employees shall be absorbed by the company.

According to Kiragu, the directors who are the office holders in the county government, and that the people who come after them shall be the next holders if they are sacked or reshuffled.

His remarks are after the criticism by Nairobi South MCA and Assembly Deputy Minority Leader Waithera Chege, who questioned the governance structure of the firm, arguing that listing specific officeholders as directors could lead to frequent changes whenever county leadership is reshuffled.

“If you put the names on that CR12, and then he does a reshuffle, does it mean he will be going to the Registrar of Companies to change the names?” Waithera paused.

Records from the Registrar of Companies show that the Nairobi County Government holds the majority stake in Green Nairobi Limited, with 4,850 shares.

Interestingly, the remaining shares are distributed among directors, each holding 50 shares. The listed directors include County Ministers Maureen Njeri (Green Nairobi), Charles Kerich (CEC Finance), County Secretary Godfrey Akumali, Chief Officer for Environment Geoffrey Mosiria and Chief Officer for Finance Asha Abdi.

What has not been answered is whether the shareholding will shift to their successors when they leave office.

The formation of the company comes amid queries recently raised by the Auditor General Nancy Gathungu regarding payments made to garbage collection contractors in the 2023/24 financial audit report.

Gathungu questioned the authenticity of billing records, noting that there was an overpayment, indicating an overpayment by the Sakaja-led administration.

“The County Executive paid a contractor an amount of Ksh 175,063,145 in respect of the hire of heavy equipment. However, review of records for the hire of three (3) heavy equipment revealed that services rendered were charged at Sh13,500 per hour instead of the contract amount of Sh10,000 per hour, resulting in overpayment of Ksh 2,684,500. A review of payment vouchers revealed variances in actual hours between the payment schedule detail and the submitted invoices, resulting in an excess payment of Sh6,562,063,” She noted.

Reports indicate that Nairobi generated 1,191,500 tonnes of garbage in 2023, up from 1,095,000 tonnes in 2022.

While collection rates improved, with 1,025,200 tonnes gathered in 2023 compared to 813,500 tonnes the previous year, a significant portion of waste remains uncollected, with MCA’s revealing that they at times pay out of pocket for garbage to be collected in their wards.

A report by the World Bank notes that 20 per cent of Nairobi’s waste consists of plastic, and only 45 per cent is recycled, reused, or repurposed.