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Kidero sends team to ‘clamp down’ Stima Plaza over Sh600m debt

By LILIAN MUTAVI October 12th, 2015 1 min read

Activities at Stima Plaza in Nairobi were disrupted for over five hours after the county government closed the premises down over Sh608 million way leave debt.

County government officials closed all gates to the building using their trucks to push for payment for the way leave where the underground cables pass.

The move was a reaction to last week’s decision by Kenya Power and Lightning (KPLC) to disconnect power to City Hall over unpaid bills.

Mr Maurice Okere, the Head of County Treasury, said the money the company owes city hall has accrued since 2002.

“This money has been accumulated since 2002 and we have been sending them letters to pay us but they have refused to pay,” said Mr Okere.

Mr Okere said they withdrew their trucks after negotiations were initiated between governor Evans Kidero, county executive for finance and the KPLC chairman.

He said while City Hall had been faithfully paying the money they owe the power company, KPLC had refused to pay their debt to city hall.


A City Hall lorry blocks one of the entrances at Stima Plaza on October 12, 2015. PHOTO | LILIAN MUTAVI
A City Hall lorry blocks one of the entrances at Stima Plaza on October 12, 2015. PHOTO | LILIAN MUTAVI

KPLC has been receiving Sh25million monthly as electricity bill payments.

“We have many other companies that have defaulted and we will clamp them until they pay us,” said Mr Okere.

He told KPLC to pay its debts with the same speed it uses to disconnect power for those who owe it.

City hall will move to 14 other companies which have defaulted including, Safaricom said to owe 14million.

City Hall said it had notified KPLC of an impending crackdown prior to the operation.

He asked the company to clear the debt to avoid being inconvenienced in future.

But the close down seemed to be retaliation on Governor Evans Kidero’s part after Kenya Power disconnected power to City Hall over unpaid power bills.