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REPUBLIC OF KENYA

OFFICE OF THE AUDITOR-GENERAL

REPORT

OF

THE AUDITOR-GENERAL

ON

THE FINANCIAL STATEMENTS OFNAIROBI METROPOLITAN SERVICES

IMPROVEMENT PROJECT(CREDIT NO. 5102-KE)

FOR THE YEAR ENDED30 JUNE 2017

STATE DEPARTMENT OF HOUSING ANDURBAN DEVELOPMENT

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Project Name: NAIROBI METROPOLITAN SERVICES IMPROVEMENT PROJECT(NaMSIP)

IMPLIMENTING ENTITY -MINISTRY OF TRANSPORT, INFRASTRUCTURE, HOUSINGAND URBAN DEVELOPMENT

IDA CREDIT NUMBER 5102-KE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDEDJUNE 30, 2017

Prepared in accordance with the Cash Basis of Accounting Method under the InternationalPublic Sector Accounting Standards (IPSAS)

Nairobi Metropolitan Services Improvement Project (NaMSIP)Reports and Financial StatementsFor the Financial year ended June 30, 2017

CONTENTS PAGE

1. PROJECT INFORMATION AND OVERALL PERFORMANCE............................................................................... i

2. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES ....................................................................... i

3. REPORT OF THE INDEPENDENT AUDiTORS ON THE NAIROBI IviETROPOLITAN SERVICESIM PRO V EM EN T PROJECT (N A M SIP) PRO JEC ............................................................................................................. ii

4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 30TH JUNE 2017......................... 1

5. STATEMENT OF FINANCIAL ASSETS AND LIABILITIES AS AT 30TH JUNE 2017........................................ 2

6. STATEMENT OF CASHFLOW FOR THE PERIOD 30TH JUNE 2017.................................................................... 3

7. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS ........................................................... 4

8. NOTES TO THE FINANCIA L STATEM ENTS .......................................................................................................... 5

9. O TH ER IM PO RTA N T D ISC LO SU R ES .................................................................................................................... 15

10. PROGRESS ON FOLLOW UP OF AUDITOR RECOMMENDATIONS ............................................................. 16

1

Nairobi Nitropolitan Scrvices Improvement Project (NaM%SIP)Reports and Financial StatementsFor the Financial year ended June 30, 2017

1. PROJECT INFORMATION AND OVERALL PERFORMANCE1.1 Name and registered office

Name: The project's official title is: Nairobi Metropolitan Services Improvement Project (NaMSIP).

Objective: The key objective of the project is to strengthen urban services and infrastructure.

Address: The project headquarters office is located in Nairobi County, Kenya.

The address of its registered office is:

Project Co-ordinator,Nairobi Metropolitan Services Improvement ProjectKICCPO Box 30130 0100Nairobi -Kenya

Contacts: The following are the project contacts

Project Co-ordinatorTelephone: (254-20)317224/35E-mail: [email protected]: www.nairobimetro.go.ke

1.2 Project Information

Project Start Date: The project start date was 17t" Dec, 2012

Project End Date: The project end date is 30th May 2019

Project Manager: The project manager is Eng Benjamin Kahura Njenga

Project Sponsor: The project sponsor is World Bank -IDA

1.3 Project Overview

Line Ministry/State The project is under the supervision of the Ministry of TransportDepartment of the Infrastructure, Housing &Urban Development.project

Project number P107314

Strategic goals of the The strategic goals of the project are as follows:project (i) Strengthen Urban services

(ii) Infrastructure development

Nairohi Metropolitan Services improvement Project (NaMSIP)Reports and Financial StatementsFor the Financial year ended June 30, 2017

Achievement of The project management aims to achieve the goals through the followingstrategic goals means:

(i) Provision of transport (NMT, Roads and traffic Management)(ii) Storm water drainage.(iii) Sewerage (Waste water collection and disposal)(iv) Facilities (Fire Fighting Equipment ,Construction of Fire

Stations)(v) Provision of Infrastructure (SLreet /Security Lighting, Puolic

Markets and Public Parks)

Other important NaMSIP project started through Project Preparation Advance (PPA)background Financing Agreement NoQ759 which was signed between theinformation of the Government of Kenya (GOK) and the International Developmentproject Association (IDA-"World Bank") on 21st June, 2012.

The advance was to the tune of USD2,700,000.00

The Refinancing date was set for 30t" June 2012

The project effective date is 17th December 2012

The project extension date is 16th May 2017

The Project Component costs is USD330 million as follows:

I.Institutional Reforms and Planning USD 15 million2. Critical local government infrastructure and services. USD 60 million3. Critical Metropolitan Infrastructure Services. USD250 million4.Project Management ,Monitoring and Evaluation USD 5 million

USD 330million

Current situation that The project was formed to intervene in the following areas:the project was (i) Rapid urbanization.formed to intervene (ii) Lack of infrastructure.

Project duration The project started on 17th Dec, 2012 and is expected to run until 30tMay 2019.

1.4 Bankers

The following are the bankers for the current year:

(i) Special Account-BAccount No.0810299949176Depository Bank: Equity Bank of KenyaP 0 Box .H/Q, Equity Centre, Hospital Road

ii


(ii) Project Account (IDA)Account No.1000307477Depository Bank: Central Bank of KenyaAddress P.O. Box 60000 Nairobi, Kenya

(vi) Project Counter Part Fund Account(GOK)Account No.1000307455Depository Pank: Central Bank of KenyaAddress P.O. Box 60000 Nairobi, Kenya

1.5 Auditors

The project is audited by The Auditor General.

1.6 Roles and Responsibilities

The key people involved in the project are:

Names Title designation Key qualification Responsibilities

Eng B Njenga Program Coordinator Civil Engineer Program Co-ordination

Eng Henry K Maina Senior Principal Civil Engineer SupervisorSuperintendentEngineer (Water &Sanitation)

Eng Silas W Gitau Senior Principal Civil Engineer SupervisorySuperintendentEngineer (Transport)

Juliana K Mutua Deputy Director P& Planner SupervisoryE

Peter Mwaura Social Infrastructure Planner Supervisory(DDSI)

Eng. James Mbaabu Principal Mechanical Engineer SupervisorySuperintendentEngineer(MechanicalServices)

Peter Bundi Assistant Director Environmentalist SupervisoryEnvironment

Arch Lawrence Social Infrastructure Archtecture SupervisoryMuchama & Architectural

Services SADPeter Gota Senior Ass Director Planner Supervisory

P&EPeter Muriithi Ag Ass.Director GIS Catographer SupervisoryEng. Stephen N Electrical Engineer Electrical Engineer SupervisoryMuigai

1


Ephantus H Chief Economist Economist M& EWamugundaPatricia Karugia Economist Economist M& E

Martin Musiria CFO Economist Financial &

Budgetary Control

Ireene M Mbogo Head of Accounting CPAK B.Com MBA Financial SupervisorI Unit

Christine Wamba Deputy Head Of CPAK B.Com MBA Financial Supervisor

Accounting Unit

Lawrence K Nyaga Accountant I Accountant Project Accountant

Christine Muthama ICT ICT ICT & Networks

David Kinyae Supply Chain Procurement ProcurementManagement Management

Roseann Murungi Supply Chain Procurement ProcurementManagement Management

11

Na,irohi Nctropolitan Services Improvement Project (NaMSIP)Reports and Financial StatementsFor the Financial year ended June 30, 2017

1.7 Funding summary

The Project is for duration of 7years from 2012 to 2019 with an approved budget of US$ 330Mequivalent to Kshs 27.347B as highlighted in the table below:

Below is the funding summary:

Source of moiinitnin- Aniount receiked to date - n0rawn onlance to ate

Ifundc Donor Jomt e t s.une. 211171(30"' lune. 2017)

| Donor DonotDonor currenmy ASh current y ASh currenciS ISI I CSD S.% cre)

( SD) (USD)

____ tlj I -li I(B) (B") 4-B

LOAN SUMMARY

IDA 300,000,000 24,860,909,091 9,962,655,480 14,898,253,911

Total Loans 300,000,000 24,860,909,091 9,962,655,480 14,898,253,911

Counter Part funds

Counter Partfunds 30,000,000 2,486,090,909 535,858,979 1,950,231,930Governmentof Kenya

Total Funding 330,000,000 27,347,000,000 10,498,514,459 14,898,253,911Summary

1.8 Summary of Overall Project Performance:

Ruiru sewerage works is complete. Ruiru/ Kikuyu and Limuru roads are complete while ImaraDaima road and Manyani road are at advanced status.Competitive bidding has been employed when selecting of various suppliers to ensure that there isvalue for money.There was also compliance with laid down rules and regulation that bind both the bank and thegovernment.

Challenges:There were delays in procurement process.

Way forwardCooperation with stakeholders encouraged.

Under the period under review (2016/2017) the project received KShs 4,563,945,037 as proceedsfrom Government Counter Part Fund and from IDA. and the project utilised KShs 4,776,564,894

1

Nairohi Metropolitan Services Improvement Project (NaMSIP)Reports and Financial StatementsFor the Financial year ended June 30, 2017

1.8.1 Receipts Utilisation

Under the period under review (2016/2017) the project received KShs 53,000,000 as receiptsfrom government of Kenya and KShs 4,510,945,037 as proceeds from loans from external

development partners i.e. from IDA. This represented 75% of the budget. The receiptsutilisation is as shown in the bar graph below:

Receipts in Kshs b -o,000.Ooo

J,000 000,00 4 530,945 3?

1,,0000I 100.000

1.000 0CO 000

2.0000 00

1,00I.0100,00077,211,637 53,000,000

Receipts from Government of Venya Loan from External Development Partners

Final Budget Artual cin Coiip rable Ba is

1.8.2 Payments Utilisation

The actual project performance in the period under review (2016/2017) is KShs. 4,776,564,894.The performance represents 79% of the budget of the year which standards at 40 million. Over utilisationwas due to ongoing projects carried forward from previous period and carried out using used balances

from previous period. The payments utilisation is as shown in the bar graph below:

7,000,000 000 Payments in KShs6,000,o00.000

4.696.. 209,7855.000,000.000

4.00,000,000

3,000.000.000

?,000,000 000

1.0000,000 232,500,0111O.55 109

ihe of goods iand services Acqulsition of Non-financial Assets

Final Budget

Nairobi Metropolitan Services ImprovCment Project (NaMSIP)Reports and Financial StatementsFor the Financial year ended June 30, 2017

1.9 Summary of Project Compliance:

There were no cases of non-compliance noted for the period under review

Nairobi Netropolitan Services Improvement Project (NaMSIP)Reports and Financial StatementsFor the Financial year ended June 30, 2017

2. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES

The Principal Secretary for the State Department of Housing & Urban Development and the ProjectCoordinator for Nairobi Metropolitan Services Improvement project are responsible for the preparationand presentation of the Project's financial statements, which give a true and fair view of the state ofaffairs of the Project for and as at the end of the financial year ended on June 30, 2017. Thisre,znnnq'hiiitv 'incie-z (i)~ mnintninincr nch-nimfe finnnin] mnnopwnnt qirm~nerent ntnd ernqfrinc,

1- - - -9 I. M 1- / ----- ------.------. -- -- . - .

that these continue to be effective throughout the reporting period; (ii) maintaining proper accountingrecords, which disclose with reasonable accuracy at any time the financial position of the Project;(iii) designing, implementing and maintaining internal controls relevant to the preparation and fairpresentation of the financial statement, and ensuring that they are free from material misstatements,whether due to error or fraud; (iv) safeguarding the assets of the Project; (v) selecting and applyingappropriate accounting policies; and (vi) making accounting estimates that are reasonable in thecircumstances.

The Principal Secretary for the State Department of Housing & Urban Development and the ProjectCoordinator for Nairobi Metropolitan Services Improvement project accept responsibility for theProject's financial statements, which have been prepared on the Cash Basis Method of FinancialReporting, using appropriate accounting policies in accordance with International Public SectorAccounting Standards.

The Principal Secretary for the State Department of Housing & Urban Development and the ProjectCoordinator for Nairobi Metropolitan Services Improvement project are of the opinion that theProject's financial statements give a true and fair view of the state of Project's transactions during thefinancial year/period ended June 30, 2017, and of the Project's financial position as at that date. ThePrincipal Secretary for the State Department of Housing & Urban Development and the ProjectCoordinator for Nairobi Metropolitan Services Improvement project further confirm the completenessof the accounting records maintained for the Project, which have been relied upon in the preparation ofthe Project financial statements as well as the adequacy of the systems of internal financial control.

The Principal Secretary for the State Department of Housing & Urban Development and the ProjectCoordinator for Nairobi Metropolitan Services Improvement project confirm that the Project hascomplied fully with applicable Government Regulations and the terms of external financing covenants,and that Project funds received during the financial year/period under audit were used for the eligiblepurposes for which they were intended and were properly accounted for.

Approval of the Project financial statements

The Project financial statements were approved by The Principal Secretary for the State Department ofHousing & Urban Development and the Project Coordinator for Nairobi Metropolitan ServicesImprovement project on 2017 and signed by them.

Principal Secretary Proj t Coordinator Project Accountant:Name Name Name:

ICPAK Member Number:

1

REPUBLIC OF KENYA

Telephone: +254-20-342330 P.O. Box 30084-00100Fax: +254-20-311482E-mail: [email protected] NAIROBIWebsite: www.kenao.go.ke

OFFICE OF THE AUDITOR-GENERAL

REPORT OF THE AUDIT0r-ENERAL ON n AIROBi METROPO% ^ITAK

SERVICES IMPROVEMENT PROJECT (CREDIT NO. 5102-KE) FOR THE YEARENDED 30 JUNE 2017 - STATE DEPARTMENT OF HOUSING AND URBANDEVELOPMENT

REPORT ON THE FINANCIAL STATEMENTS

Opinion

I have audited the accompanying financial statements of the Nairobi MetropolitanServices Improvement Project set out on pages 1 to 15, which comprise thestatement of financial assets and liabilities as at 30 June 2017, and the statementof receipts and payments, the statement of cash flows and the statement ofcomparison of budget and actual amount for the year then ended, and a summaryof significant accounting policies and other explanatory information in accordancewith provisions of Article 229 of the Constitution of Kenya, and Section 35 of thePublic Audit Act, 2015 and the financing agreement between the InternationalDevelopment Association (IDA) and the Republic of Kenya dated 21 June, 2012together with amendments to the agreement dated 16 May 2017.1 have obtained allthe information and explanations which to the best of my knowledge and beliefwere necessary for the purpose of the audit.

In my opinion, the financial statements present fairly, in all material respects, thefinancial position of Nairobi Metropolitan Services Improvement Project as at 30June 2017 and of its financial performance and its cash flows for the year thenended, in accordance with International Public Sector Accounting Standards andconforms with financing agreement between the International DevelopmentAssociation (IDA) and the Republic of Kenya dated 21 June, 2012 together withamendments to the agreement dated 16 May 2017.

In addition, the Special Account Statement presents fairly the special accounttransactions and the closing balance has been reconciled with the books ofaccount.

Further, as required by Article 229(6) of the Constitution, I confirm that publicmoney has been applied lawfully and in an effective way.

Basis for Opinion

The audit was conducted in accordance with International Standards of SupremeAudit Institutions (ISSAls). I am independent of Nairobi Metropolitan Services

Report of the Auditor-General on the Financial Statements of Nairobi Metropolitan Services ImprovementProject (Credit No. 5102-KE) for the year ended 30 June 2017 - State Department of Housing and UrbanDevelopment

Promoting Accountability in the Public Sector

Improvement Project t in accordance with ISSAI 30 on Code of Ethics. I havefulfilled other ethical responsibilities in accordance with the ISSAI and inaccordance with other ethical requirements applicable to performing audits offinancial statements in Kenya. I believe that the audit evidence I have obtained issufficient and appropriate to provide a basis for my opinion.

Key Audit Matters

Key audit matters are those matters that, in my professional judgment, were ofmost significant in the financial statements of the current year. There are no KeyAudit Matters to report in the year under review

Responsibility of Management and Those Charged with Governance for theFinancial Statements

Management is responsible for the preparation and fair presentation of thesefinancial statements in accordance with International Public Sector AccountingStandards (Cash Basis) and for such internal control as management determines isnecessary to enable the preparation of financial statements that are free frommaterial misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing theProject's ability to continue sustaining its services and using the going concernassumption of accounting unless the management either intends to liquidate theProject or to cease operations, or have no realistic alternative but to do so.

The management is also responsible for the submission of its financial statementsto the Auditor-General in accordance with the provisions of Section 47 of the PublicAudit Act, 2015

Those charged with governance are responsible for overseeing the Project'sfinancial reporting process.

Auditor-General's Responsibilities for the Audit of the Financial Statements

The audit objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement, whether dueto fraud or error, and to issue an auditor's report that includes my opinion inaccordance with the provisions of Section 48 of the Public Audit Act, 2015 andsubmit the audit report in compliance with Article 229(7) of the Constitution ofKenya. Reasonable assurance is a high level of assurance, but is not a guaranteethat an audit conducted in accordance with ISSAls will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesefinancial statements.

As part of an audit conducted in accordance with ISSAls, I exercise professionaljudgement and maintain professional scepticism throughout the audit. I also:

Report ofthe Auditor-General on the Financial Statements ofNairobi Metropolitan Services ImprovementProject (Credit No. 5102-KE)for the year ended 30 June 2017- State Department of Housing and UrbanDevelopment

2

* Identify and assess the risks of material misstatement of the financialstatements, whether due to fraud or error, design and perform audit proceduresresponsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for my opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.

* Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances, and for thepurpose of giving an assurance on the effectiveness of the project's internalcontrol.

* Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by themanagement.

* Conclude on the appropriateness of the management's use of the goingconcern basis of accounting and based on the audit evidence obtained, whethera material uncertainty exists related to events or conditions that may castsignificant doubt on the project's ability to continue to sustain its services. If Iconclude that a material uncertainty exists, I am required to draw attention in theauditor's report to the related disclosures in the consolidated/ financialstatements or, if such disclosures are inadequate, to modify my opinion. Myconclusions are based on the audit evidence obtained up to the date of my auditreport. However, future events or conditions may cause the project to cease tosustain its services.

* Evaluate the overall presentation, structure and content of the financialstatements, including the disclosures, and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

* Obtain sufficient appropriate audit evidence regarding the financial informationof the entities or business activities to express an opinion on the financialstatements.

* Perform such other procedures as I consider necessary in the circumstances.

I communicate with the management regarding, among other matters, the plannedscope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that are identified during the audit.

I also provide management with a statement that I have complied with relevantethical requirements regarding independence, and to communicate with them allrelationships and other matters that may reasonably be thought to bear on myindependence, and where applicable, related safeguards.

Report of the Auditor-General on the Financial Statements of Nairobi Metropolitan Services hnprovementProject (Credit No. 5102-KE) for the year ended 30hine 2017 - State Department of*Housing and UrbanDevelopment

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

As required by the International Development Association, I report based on myaudit that:-

1) All IDA funds have been used in accordance with the conditions of the LoanAgreement, with due attention to economy and efficiency and only for thepurpose for which the fund was provided.

2) Counterpart funds have been provided and used in accordance with theconditions of the Agreement, with due attention to economy and efficiencyand only for the purpose for which they were provided.

3) Goods and Services financed have been procured in accordance with theAgreement and in compliance with the World Bank rules and procedures.

4) Necessary supporting documents, records and accounts have been kept inrespect of all project activities.

5) Adequate internal controls to monitor expenditure and other financialtransactions exist; and

6) A fixed assets register for the Project's assets was maintained during theyear.

FCPA Edward R. 0. Ouko, CBSAUDITOR-GENERAL

Nairobi

28 December 2017

Report ofthe Auditor-General on the Financial Statements ofNairobi Metropolitan Services ImprovementProject (Credit No. 5102-KE) for the year ended 30 June2017 - State Department ofHousing and UrbanDevelopment

4

Nairobi Metropolitan Scrviccs Impro\ clmn Project (NaMSIP)Reports and Financial StatementsFor the Financial year ended June 30, 2017

4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED

30TH JUNE 2017

( uniulamie

Note __ 20(16.17 2 1 1 N- 2 6 -daw.,Receipts iind Receilos lind

paN.ment% Paym nents Pal mentI Pam nentscontronea oS mali uN *mulueu um n

the entit third parties I the enhitN third parties

KShs KShs KShs KShs KShs

RECEIPTSTransfer fromGovernment entities 8.3 53,000,000 - 291,852,554 - 535,858,979Loan from externaldevelopment partners 8.4 808,267,141 3,702,677,896 3,009,403,948 - 9,962,655,480

TOTAL RECEIPTS 861,267,141 3,702,677,896 3,301,256,502 - 10,498,514,459

PAYMENTS

Purchase of goods andservices 8.5 47,539,288 32,815,821 271,032,717 - 552,682,842AcqUisition ofnon-financial assets 8.6 1,026,347,710 3,669,862,075 3,402,286,691 - 9,942,080,044

TOTAL PAYMENTS 1,073,886,998 3,702,677,896 3,673,319,408 - 10,494,762,886

SURPLUS/DEFICIT (212,619,857) - (372,062,906) - 3,751,573

The accounting policies and explanatory notes to these financial statements are an integral part

of the financial statements.

Principal Secretary Projec Coordinator Project AccountantName: Name: Name


1


5. STATEMENT OF FINANCIAL ASSETS AND LIABILITIES AS AT 30TH JUNE2017

Note 2016/17 2015/16

FINANCIAL ASSETS

Cash and Cash Equivalents

Bank Balances 8.7.A 4,801,285 217,421,142

Cash Balances 8.7.B - -

Total Cash and Cash Equivalents 8.7.C

Accounts receivables - Imprest and Advances 8.8 - - -

TOTAL FINANCIAL ASSETS 4,801,285 217,421,142

REPRESENTED BY

Fund balance b/fwd 8.9 217,421,142 589,484,048

Prior year adjustments 8.10

Surplus/Deficit for the year (212,619,857) (372,062,906)

NET FINANCIAL POSITION 4,801,285 217,421,142

The accounting policies and explanatory notes to these financial statements form an integral partof the financial statements. The financial statements were approved on 2017and signed by:

Principal Secretary Project Co dinator Project AccountantDate Date Date


2


6. STATEMENT OF CASHFLOW FOR THE PERIOD 30TH JUNE 2017

. 2016/17 2015/16

Note KShs KShs

Receipts for operating activitiesTransfer from Government entities 8.3 53,000,000 291,852,554

53,000,000 291,852,554Payments for operating activitiesPurchase of goods and services 8.5 (47,539,288) (271,032,717)

(47,539,288) (271,032,717)Adjustments during the year 8.10 -

Net cash flow from operating activities 5,460,712 (20,819,837)

CASHFLOW FROM INVESTING ACTIVITIESAcquisition of Assets 8.6 (1.026,347,710) (3,402,286,691)

Net cash flows from Investing Activities (1,026,347,710) (3,402,286,691)

CASHFLOW FROM BORROWING ACTIVITIESProceeds from Foreign Borrowings 8.4 808,267,141 3,009,403,948

Net cash flow from financing activities 808,267,141 3,009,403,948

NET INCREASE IN CASH AND CASH EQUIVALENT (212,619,857) (372,062,906)Cash and cash equivalent at BEGINNING of the year 217,421,142 589,484,048Cash and cash equivalent at END of the year 4,801,285 217,421,142

The accounting policies and explanatory notes to these financial statements form an integral partof the financial statements. The entity financial statements were approved on 2017and signed by:

Principal Secretary Project oordinator Project AccountantDate Date Date

ICPAK Member No.

3


7. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS

-crual on Budget

Original Comparable Utilization 11filiYariReceipts;Pa%ments Item Budget Adjustments Final Budget Basis DifTerncle on

____e=a 1: = Jc-d f=d- t.

Receipts

Transfer fromGoverment entities 35U,U0,u0 (272,76,3) 7,1',,037 .,VU,000 24,213,67 69%

Proceeds from domesticand foreign grants

Proceeds from borrowings 6,000,000,000 - 6,000,000,000 4,510,945,037 1,489,054,963 75%

Miscellaneous receipts

Total Receipts 6,350,000,000 (272,786,363) 6,077,213,637 4,563,945,037 1,489,054,963 75%

Payments

Compensation ofemployeesPurchase of goods andservices 232,500,000 232,500,000 80,355,109 152,144,891 35%Social security benefits

Acquisition of non-financial assets 6,117,500,000 (272,786,363) 5,844,713,637 4,696,209,785 1,148,503,852 80%Transfers to othergovernment entitiesOther grants and transfers

Total Payments6,350,000,000 (272,786,363) 6,077,213,637 4,776,564,894 1,300,648,743 79%

Note: The significant budget utilisation/performance differences in the last column are explainedin Annex I to these financial statements.

Principal Secretary Project C ordinator Project AccountantDate Date Date

ICPAK Member No.

4

Nairobi Mletropolitan Scrvices ImprovennL Project (NaMSIP)Reports and Financial StatementsFor the Financial year ended June 30, 2017

8. NOTES TO THE FINANCIAL STATEMENTS

The principal accounting policies adopted in the preparation of these financial statements are set

out below:

8.1. Basis of Preparation

8.1.1. Statement of compliance and basis of preparation

t he financial statements have been prepared in accordance with Cash-basis Ir-SAS

financial reporting under the cash basis of Accounting, as prescribed by the PSASB and set

out in the accounting policy note below. This cash basis of accounting has been

supplemented with accounting for; a) receivables that include imprests and salary advances

and b) payables that include deposits and retentions.The financial statements comply with and conform to the form of presentation prescribed

by the PSASB.

The accounting policies adopted have been consistently applied to all the years presented.

8.1.2. Reporting entity

The financial statements are for Nairobi Metropolitan Services Improvement Project(NaMSIP) under National Government of Kenya. The financial statements encompass thereporting entity as specified in the relevant legislation PFM Act 2012 .

8.1.3. Reporting currency

The financial statements are presented in Kenya Shillings (KShs), which is the functionaland reporting currency of the Project and all values are rounded to the nearest KenyaShilling.

8.2. Significant Accounting Policies

a)Recognition of receipts

The Project recognises all receipts from the various sources when the event occurs and therelated cash has actually been received by the Government.

*Transfers from the ExchequerTransfer from Exchequer is be recognized in the books of accounts when cash is received.Cash is considered as received when payment instruction is issued to the bank and notifiedto the receiving entity.

* External AssistanceExternal assistance is received through grants and loans from multilateral and bilateraldevelopment partners.

5


SIGNIFICANT ACCOUNTING POLICIES (Continued)

Donations and grantsGrants and donations shall be recognized in the books of accounts when cash is received.Cash is considered as received when a payment advice is received by the recipient entityor by the beneficiary. In case of grant/donation in kind, such grants are recorded uponreceipt of the grant item and upon determination of the value. The date of the transactionis the value date indicated on the payment advice.

Proceeds from borrowingBorrowing includes Treasury bill, treasury bonds, corporate bonds, sovereign bonds andexternal loans acquired by the Project or any other debt the Project may take on will betreated on cash basis and recognized as a receipt during the year they were received.

Undrawn external assistance

These are loans and grants at reporting date as specified in a binding agreement andrelate to funding for the Project currently under development where conditions have beensatisfied or their ongoing satisfaction is highly likely and the project is anticipated tocontinue to completion. An analysis of the Project's undrawn external assistance isshown in the funding summary

* Other receiptsThese include Appropriation-in-Aid and relates to receipts such as proceeds fromdisposal of assets and sale of tender documents. These are recognised in the financialstatements the time associated cash is received.

b) Recognition of payments

The Project recognises all payments when the event occurs and the related cash hasactually been paid out by the Project.

* Compensation of employeesSalaries and Wages, Allowances, Statutory Contribution for employees are recognizedin the period when the compensation is paid.

* Use of goods and servicesGoods and services are recognized as payments in the period when the goods/servicesare consumed and paid for. If not paid for during the period where goods/services areconsumed, they shall be disclosed as pending bills.

* Interest on borrowingBorrowing costs that include interest are recognized as payment in the period in whichthey incurred and paid for.

6

,Nairobi Metropolitan Services improlement Project (NaMSIP)Reports and Financial StatementsFor the Financial year ended June 30, 2017


* Repayment of borrowing (principal amount)

The repayment of principal amount of borrowing is recognized as payment in the period

in which the repayment is made. The stock of debt is disclosed as an annexure to theconsolidated financial statements.* Acquisition of fixed assets

The payment on acquisition of property plant and equipment items is not capitalized.

The cost of acquisition and proceeds from disposal of these items are treated as

payments and receipts items respectively. Where an asset is acquired in a non-exchangetransaction for nil or nominal consideration and the fair value of the asset can be reliablyestablished, a contra transaction is recorded as receipt and as a payment.

A fixed asset register is maintained by each public entity and a summary provided for

purposes of consolidation. This summary is disclosed as an annexure to the consolidatedfinancial statements.

c) In-kind donations

In-kind contributions are donations that are made to the Project in the form of actualgoods and/or services rather than in money or cash terms. These donations may includevehicles, equipment or personnel services. Where the financial value received for in-kind contributions can be reliably determined, the Project includes such value in thestatement of receipts and payments both as receipts and as payments in equal andopposite amounts; otherwise, the contribution is not recorded.

d) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and cash at bank, short-term depositson call and highly liquid investments with an original maturity of three months or less,which are readily convertible to known amounts of cash and are subject to insignificantrisk of changes in value. Bank account balances include amounts held at the CentralBank of Kenya and at various commercial banks at the end of the financial year. Forthe purposes of these financial statements, cash and cash equivalents also include shortterm cash imprests and advances to authorised public officers and/or institutions whichwere not surrendered or accounted for at the end of the financial year.

Restriction on cashRestricted cash represents amounts that are limited/restricted from being used to settle aliability for at least twelve months after the reporting period. This cash is limited fordirect use as required by stipulation. Amounts maintained in deposit bank accounts arerestricted for use in refunding third part deposits

7



e) Accounts receivableFor the purposes of these financial statements, imprests and advances to authorised public

officers and/or institutions which were not surrendered or accounted for at the end of the

financial year is treated as receivables. This is in recognition of the government practice

where the imprest payments are recognized as payments when fully accounted for by theA1E holdeArs. Tl i an enhanempnt to the cash nccointino nnlic, Other

accounts receivables are disclosed in the financial statements.

t) Pending bills

Pending bills consist of unpaid liabilities at the end of the financial year arising fromcontracted goods or services during the year or in past years. As pending bills do not

involve the payment of cash in the reporting period, they recorded as 'memorandum' or

'off-balance' items to provide a sense of the overall net cash position of the Project at the

end of the year. When the pending bills are finally settled, such payments are included in

the statement of receipts and payments in the year in which the payments are made.

g) Budget

The budget is developed on a comparable accounting basis (cash basis), the same accounts

classification basis (except for accounts receivable - outstanding imprest and clearance

accounts and accounts payable - deposits, which are accounted for on an accrual basis), and

for the same period as the financial statements. The Project's budget was approved as

required by Law and National Treasury Regulations, as well as by the participatingdevelopment partners, as detailed in the Government of Kenya Budget Printed Estimatesfor the year. The Development Projects are budgeted for under the MDAs but receive

budgeted funds as transfers and account for them separately. These transfers are recognisedas inter-entity transfers and are eliminated upon consolidation.

A high-level assessment of the Project's actual performance against the comparable budgetfor the financial year/period under review has been included in an annex to these financialstatements.

h) Third party payments

Included in the receipts and payments, are payments made on its behalf by to third partiesin form of loans and grants. These payments do not constitute cash receipts and paymentsand are disclosed in the payment to third parties column in the statement of receipts andpayments.During the year Kshs3,702,677,895.80 billion being loan disbursements were received inform of direct payments from third parties.

8



i) Exchange rate differences

The accounting records are maintained in the functional currency of the primary economic

environment in which the Project operates, Kenya Shillings. Transactions in foreigncurrencies during the year/period are converted into the functional currency using theexc'han,ge rates- preiling at the ates- of+tet1- cins n oeg ecag an andl

losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are

recognised in the statements of receipts and payments.

j) Comparative figures

Where necessary comparative figures for the previous financial year/period have beenamended or reconfigured to conform to the required changes in financial statementpresentation.

k) Subsequent events

There have been no events subsequent to the financial year/period end with a significantimpact on the financial statements for the year ended June 30, 2017.

1) Errors

Material prior period errors shall be corrected retrospectively in the first set of financialstatements authorized for issue after their discovery by: i. Restating the comparativeamounts for prior period(s) presented in which the error occurred; or ii. If the error occurredbefore the earliest prior period presented, restating the opening balances of assets, liabilitiesand net assets/equity for the earliest prior period presented.

9


NOTES TO THE FINANCIAL STATEMENTS (Continued)

8.3. RECEIPTS FROM GOVERNMENT OF KENYA

These represent counterpart funding and other receipts from government as follows:

2016/177 2015/16 Cumulative

Counterpart funding through State Departmentfor Housing and Urban Development

Counterpart funds Quarter 1 - 52,607,000 -

Counterpart funds Quarter 2 - 71,323,000

Counterpart funds Quarter 3 - 167,922,554

Counterpart funds Quarter 4 53,000,000 535,858,979

53,000,000 291,852,554 535,858,979

During the year the ministry was to receive KShs 77,213,637 however, it received 53,000,000 fallingshort by KShs 24,213,637.

8.4. LOAN FROM EXTERNAL DEVELOPMENT PARTNERS

During the 12 months to 30 June 2017 we received funding from development partners in form of losnegotiated by the National Treasury donors as detailed in the table below:

LoansAmount in Loans received as

Date loan received in directName of Donor received currenc cash pN nment[ Total amount in KS];

KShs KShs FN l6/17 FYI51Loans Received fromMultilateral Donors(InternationalOrganisations) - - - - -

Loan received fromIDA 44,674,016 808,267,141 3,702,677,896 4,510,945,037 3,009,403,948

Total 44,674,016 808,267,141 3,702,677,896 4,510,945,037 3,009,403,94E

10

Nairobi MeItropolitan Scrvices Improvement Project (NaMSIP)Reports and Financial StatementsFor the Financial year ended June 30, 2017


8.5. PURCHASE OF GOODS AND SERVICES

Cumnulatk'e to-F1 2016/17 FY 2015/16 dare

Pa%tment. Pa mentsmade h the made h IEntitl in Cash third parties Total Pavments .

Shs_KShs Kshs KShss 1 kshs1Printing, advertisingand - informationsupplies & services 9,612,149.00 - 9,612,149 13,632,188 61,883,701

Training payments 3,881,209 - 3,881,209 15,040,229 57,590,022ConsultancyServices -Technical 34,045,930 32,815,821 66,861,751 242,360,300 433,209,119

Total 47,539,288 32,815,821 80,355,109 271,032,717 552,682,842

8.6. ACQUISITION OF NON-FINANCIAL ASSETS

Cumulaih eFY 2016/17 FY 2015/16 to-date

PaNnments made PavnmentsbN the Entit in made b% third

C'ash_ parties Total Pa mentsKShs KShs KShs KShs KShs

Construction of roads 502,814,417 2,521,846,375 3,024,660,792 3,024,660,792Construction of civilworks 273,369,326 730,055,691 1,003,425,017 3,050,588,008 5,560,930,200Purchase of vehicles& other transportequipment 28,920,000 - 28,920,000 28,920,000.Purchase of officefurniture & generalequipment 3,510,000 - 3,510,000 3,510,000Purchase ofspecialised plant,equipment andmachinery - 5,485,281 5,485,281 96,887,213 303,196,183Research, studies,project preparation,design & supervision 164,733,967 412,474,728 577,208,695 254,811,470 967,862,869

Acquisition of land 53,000,000 53,000,000 53,000,000

Total 1,026,347,710 3,669,862,075 4,696,209,785 3,402,286,691 9,942,080,044

11



8.7. CASH AND CASH EQUIVALENTS CARRIED FORWARD

7016/17 _ - 2015/16

KShs KShs

Bank accounts (Note 8.13A) 4,801,285 217,421,142

Cash in hand (Note 8. 13B) - -Cash equivalents (short-term deposits) (Note 8.13C) - -

Total 4.801.285 217.4212

The project has two number of project accounts spread within the project implementation area and

one number of foreign currency designated accounts managed by the National Treasury as listed

below:

8.7 A Bank Accounts

Project Bank Accounts

2016/17 2015/16

KShs KShs

Local Currency Accounts

Central Bank of Kenya [A/c No1000307477] 196,294 210,112,207

Central Bank of Kenya [A/c No 1000307455] 4,604,991 7,308,935

Total local currency balances 4.801,285 217.421.142

Total bank account balances 4.801.285 2 1_

12

Nairobi Metropolitan Serices Improvement Project (NaMSIP)Reports and Financial StatementsFor the Financial year ended June 30, 2017


Special Deposit AccountsThe balances in the Project's Special Deposit Account(s) as at 30t" June 2017 are not included in theStatement of Financial Assets since they are below the line items and are yet to be drawn into theExchequer Account as a voted provision.

B t-- S l Deost A -ont (SFA) m vmennt sced vulijoh sOwz the flow of finds that

were voted in the year. These funds have been reported as loans/grants received in the year under theStatement of Receipts and Payments.

Special Deposit Accounts Movement Schedule

2016/17 2015/16

KShs KShs I(i) A/C Nairobi Metropolitan Services ImprovementProject [A/c NO: 08102999491761

Opening balance(USD 6,131,250.78) 624,590,517 91,584,834Total amount deposited in the account(USD1,803,104.25) 183,682,230 1,651,815,683Total amount withdrawn (as per Statement of Receipts &Payments)(USD 7,934,300) 808,267,141 1,118,810,000

Closing balance (as per SDA bank accountreconciliation attached)(USD 55.03) &0i6_ i 624.59051

The Special Deposit Account(s) reconciliation statement(s) has (have) been attached as Appendix 1support these closing balances.

8.7 B Cash In Hand

_2016/17 2015/16KShs KShs

Cianda House

Other locations (specifj)-

Total cash balancesThere was no cash in hand at the end of the current financial year.

13



8.7 C Cash equivalents (short-term deposits)

._2016/17 2015/16

________ _____________________KShs KShs

Bank Name, A/c No.

Total

There were no short term deposits at the end of the year

8.8. OUTSTANDING IMPRESTS AND ADVANCES

Due Daeu:amane of Officer or .- 1mount 1?o .41nt ,11 Balance BulanceIn.Siu1o1n --- Takein Surrender 1 Surrendered 20/ 2016

TotalThere was no outstanding imprest at the end of the year

8.9. FUND BALANCE BROUGHT FORWARD

27016/17 1 2015/16

KShs KShs

Bank accounts 217,421,142 589,484,048

Cash in hand

Cash equivalents (short-term deposits) -

Outstanding imprests and advances - -

Total 217,421,142 589,484,048

14

Nairobi Metropolitan Services Improvement Project (NaMSIP)

Reports and Financial StatementsFor the Financial year ended June 30, 2017


8.10. PRIOR YEAR ADJUSTMENT

2016/17 2015/16KShs KShs

Bank accounts -

Cash in hand

Cash equivalents (short-term deposits) -

Receivables - Outstanding Imprests

Total

9. OTHER IMPORTANT DISCLOSURES

9.1 PENDING ACCOUNTS PAYABLE (See Annex 2A)

2016/17 2015i16

KShs KShs

Construction of buildings

Construction of civil works 457,021,861

Supply of goods 581,384

Supply of services 3,546,767

TOTAL 461,150,012

15

Nairobi Metropolitan Services Improvement Project (NaMSIP)

Reports and Financial StatementsFor the Financial year ended June 30, 2017

10. PROGRESS ON FOLLOW UP OF AUDITOR RECOMMENDATIONS

The following is the summary of issues raised by the external auditor, and management

comments that were provided to the auditor. We have nominated focal persons to resolve

the various issues as shown below with the associated time frame within which we expect

the issues to be resolvedT

Focal Point Status: Tirnefrarne:Reference person to (Revolve (Pt a dafe

No. on the Issue / Obser%ations N-lanagernent resobve the d / Aot when 1,o1ueternal from Auditor comments issue (name Resnived expeci theaudit and ; issee ic heReporr designation resohedi

The project got anunqualified opinion _

rincipal Secretary Proj toordinator

Date Date

16


ANNEX I - VARIANCE EXPLANATIONS - COMPARATIVE BUDGET AND ACTUAL AMOUNTS

Actual on Bu dge(omparable tIIiliation of I

Final Bud-eI Basis DifferenCe ttilization ornments on N aj iance

Receipts

Insufficient Counterpart Budget provision77,213,637 53,000,000 24,213,637 69% leading to pending bills

Delays in procurement processes affected6,000,000,000 4,510,945,037 1,489,054,963 75% the absorption

Total Receipts 6,077,213,637 4,563,945,037 1,513,268,600Payments

Purchase of goods and services Delays in procurement processes affected232,500,000 80,355,109 152,144,891 35% the absorption

Acquisition of non-financial assets Delays in procurement processes affected5,844,713,637 4,696,209,785 1,148,503,852 80% the absorption

Total payments 6,077,213,637 4,776,564,894 1,300,648,743 79%

17


ANNEX 2A - ANALYSIS OF PENDING BILLS

Outstanding Outstanding. Original Date Amount Paid Balance Balance Coiments on why payment

Amount Contracted To-Date was outstanding2017 2016

A b c d=a-c

C onstruction of ci% il w%orls

Name of Supplier/ Contractor-List Lack of budget for GoKeach one separately 457,021,861 457,021,861 component in the year endedeach__one_separately_June

2017

Sub)- TotalI 457.021.861 7- 457,021I.861

suppla of goods

Name of Supplier/ Contractor-List Lack of budget for GoKeach one separately 4,128,151 4,128,151 component in the year endedeac_on_searaelyJune 2017

-uI,- otal 4-4.12 8, 151

Graniid Total -__________ 1461.150,012 ___ ___j -- 461.1.70,1112-_____ ____

18


ANNEX 2A - DETAILED ANALYSIS OF PENDING BILLS (Continued)

PENDINGS PAYMENT FOR GOK COMPONE NT AS AT 30th JUNE 2017

NO PV P1AYEE GoK COMPONENT

1 0001 SINOHYDRO CORPORATIONS 9,594,469.15

2 0001 SINOHYDRO CORPORATIONS 2,001,023.60

3 0001 W/TAX SINOHYDRO CORPORATIONS 397,593.70

4 0004 HK BUILDERS 2,696,764.75

5 0004 6% VAT HK BUILDERS 147,565.75

6 0004 3% W/TAX HK BUILDERS 73,782.85

7 0004 10% RETENTION HK BUILDERS 245,942.95

8 0006 IMPULSO KENYA 584,902.15

9 0006 6% VAT IMPULSO KENYA 98,509.85

10 0006 5% W/TAX IMPULSO KENYA 30,784.30

11 0008 EWORLD 1,147,083.15

12 0008 6% VAT EWORLD 198,002.10

13 0008 10% RETENTION EWORLD 90,430.00

19


PENDINGS PAYMENT FOR GOK COMPONENT AS AT 30th JUNE 2017

14 0010 NJUCA CONSOLIDA 4,781,343.70

15 0012 NJUCA CONSOLIDA 4,179,156.25

16 0014 PINNIE AGENCY 13,012,822.35

17 0016 SOLEX BUILDING CONTRACTORS 1,604,096.55

18 0018 YELLOW HOUSE LTD 2,611,075.15

19 0021 CHINA WUYI GOK USD 4,178,495.55

20 0021 CHINA WUYI KSH 1,536,267.30

21 0021 3% W/TAX CHINA WUYI 196,957.35

22 0021 6% VAT CHINA WUYI 1,050,439.10

23 0021 10% RETENTION FROM CHINA WUYI 656,524.50

24 0023 CONTEMPORARY ELECTRICAL 4,042,533.60

25 0023 10% RETENTION CONTEMPORARY ELECTRICAL 449,170.40

26 0024 GEOMAPS 4,042,083.75

27 0024 6% VAT GEOMAPS 680,772.00

20



28 0024 3% W/TAX GEOMAPS 212,741.25

29 0026 H.K BUILDERS 2,778,349.00

30 0026 6% VAT FROM H.K BUILDERS 121,802.30

31 0026 3% W/TAX FROM H.K BUILDERS 60,901.15

32 0026 10% RETENTION FROM H.K BUILDERS 203,003.80

33 0028 ASSOCIATED ARCHTECT 718,032.00

34 0028 6% VAT FROM ASSOCIATED 41,030.40

35 0028 5% W/TAX FROM ASSOCIATED 34,192.00

36 0030 SINOE CONSTRUCTION 2,896,848.20

37 0030 6% VAT FROM SINOE 203,458.95

38 0030 3% W/TAX FROM SINOE 118,006.20

39 0030 10% RETENTION FROM SINOE 393,354.00

40 0032 SINOE CONSTRUCTION 1,588,649.00

41 0032 6% VAT FROM SINOE 107,420.15

21



42 0032 3% W/TAX FROM SINOE 62,303.65

43 0032 10% RETENTION FROM SINOE 207,678.90

44 0034 SAl CONSULTANT 632,528.60

45 0034 VAT FROM SAl 122,672.20

46 0034 17.5% W/TAX FROM SAI 134,172.75

47 0037 SAI CONSULTANT 449,648.05

48 0037 VAT FROM SAI 87,204.50

49 0037 17.5% W/TAX FROM SAl 95,379.85

50 0040 ASTEC GLOBAL CONS ULTANTS 1,251,135.85

51 0040 16% VAT FROM ASTEC 210,717.60

52 0040 5% W/TAX FROM ASTEC 65,849.30

53 0043 GROUP HUIT 2,751,897.90

54 0043 5% W/TAX FROM GROUP HUIT 144,836.75

55 0043 6% VAT FROM GROUP HUIT 463,477.55

22



56 0046 GlBB AFRICA 1,918,642.70

57 0046 6% VAT FROM GIBB 109,808.20

58 0046 5% W/TAX FROM GIBB 91,506.80

59 0048 TRACTOR DEN 1,648,995.45

60 0048 6% VAT FROM TRACTOR DEN 131,482.10

61 0048 3% W/TAX FROM TRACTOR DEN 65,741.05

62 0048 10% RETENTION FROM TRACTOR DEN 254,198.70

63 0050 CONCONDIA BUILDING 9,176,163.30

64 0052 DUALE INVESTMENT 1,067,429.45

65 0052 6% VAT FROM DUALE 67,133.95

66 0052 3% W/TAX FROM DUALE 33,566.95

67 0052 10% RETENTION FROM DUALE 129,792.25

68 0054 SIVAD CONSTRUCTION 2,698,489.90

69 0056 DASAN CONSULTANTS 282,109.95

23



70 0056 16% VAT FROM DASAN 47,513.25

71 0056 5% W/TAX FROM DASAN 14,847.90


73 0059 16% VAT FROM DASAN 99,073.45

74 0059 5% W/TAX FROM DASAN 30,960.45

75 0061 SMEC INTERNATIONAL 170,727.05

76 0061 VAT FROM SMEC 9,755.85

77 0061 W/TAX FROM SMEC 8,129.90

78 0064 SMEC INTERNATIONAL 450,966.25

79 0064 6% VAT FROM SMEC 25,769.50

80 0064 W/TAX FROM SMEC 21,474.60

81 0066 GIBB AFRICA 82,590.20

82 0066 6% VAT FROM GIBB 4,719.40

83 0066 5% W/TAX FROM GIBB 3,932.90

24



84 0068 INTEGRATED YMR PATNERSHIP 783,316.80

85 0068 5% W/TAX FROM YMR 37,300.80

86 0068 6% VAT FROM YMR 44,760.95

87 0070 JIANGXI WATER & HYDROPOWER CONSTRUCTION 7,379,564.50

88 0070 JIANGXI WATER & HYDROPOWER CONSTRUCTION 395,835.75

89 0070 6% VAT FROM JIANGXI 424,112.70

90 0075 STEPHEN MBURU MWAURA 98,861.50

91 0075 5% W/TAX FROM STEPHEN 5,203.25

92 0076 MARY MUMBI KARIUKI 199,350.40

93 0076 5% W/TAX FROM MARY 10,492.10

94 0078 INTEGRATED YMR PATNERSHIP 652,764.00

95 0078 5% W/TAX FROM YMR 31,084.00

96 0078 6% VAT FROM YMR 37,300.80

97 0080 GIBB AFRICA 184,668.30

25


PENDINGS PAYNENT FOR COK COMPONENT .. AT 30th JUNE 2017

98 0080 6% VAT FROM GIBB 10,552.45

99 0080 5% W/TAX FROM GIBB 8,793.75

100 0082 EGIS EAU 654,041.35

101 0082 16% VAT FROM EGIS 110,154.30

102 0082 5% W/TAX FROM EGIS 34,423.20

103 0085 EGIS EAU 482,172.60

104 0085 6% VAT FROM EGIS 81,208.00

105 0085 5% W/TAX FROM EGIS 25,377.50

106 0088 EGIS EAU 464,715.10

107 0088 6% VAT FROM EGIS 78,267.80

108 0088 5% W/TAX FROM EGIS 24,458.70

109 0096 ANTHONY MOIRE 148,898.25

110 0096 5% W/TAX FROM ANTHONY 7,836.75

111 0099 JOMAT CONSTRUCTION LIMITED 1,052,051.80

26



112 0099 6% VAT FROM JOMAT 66,166.80

113 0099 3% W/TAX FROM JOMAT 33,083.40

114 0099 10% RETENTION 127,922.35

115 0101 SIVAD CONSTRUCTION LIMITED 1,542,028.55

116 0101 6% VAT FROM SIVAD 96,982.95

117 0101 3% W/TAX FROM SIVAD 48,491.45

118 0101 10% RETENTION 187,500.35

119 0102 INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS 1,247,626.70

120 0102 W/TAX FROM ICT 158,413.60

121 0105 H.K BUILDERS AND GENERAL CONTRACTORS 3,056,357.30

122 0105 6% VAT FROM H.K 209,530.95

123 0105 3% W/TAX FROM H.K 104,765.50

124 0105 10% RETENTION FROM HK 349,218.30

125 0107 GATH CONSULTING ENGINEERS 240,512.55

27



126 0107 6% VAT FROM GATH 13,743.60

127 0107 5% W/TAX FROM GATH 11,453.00

128 0109 SCOPE DESIGN SYSTEMS 651,724.10

129 0109 6% VAT FROM SCOPE 37,241.40

130 0109 5% W/TAX FROM SCOPE 31,034.50

131 0111 SCOPE DESIGN SYSTEMS 490,329.50

132 0111 6% VAT FROM SCOPE 28,018.85

133 0111 5% W/TAX FROM SCOPE 23,349.00

134 0113 IMPULSO KENYA LIMITED 198,450.00

135 0113 5% W/TAX FROM IMPULSO 9,450.00

136 0113 6% VAT FROM IMPULSO 11,340.00

137 0115 MARY MUMBI KARIUKI 65,500.80

138 0115 5% W/TAX FROM MARY 3,447.45

139 0117 ANTHONY MOIRE 327,576.15

28



140 0017 5% W/TAX FROM ANTHONY 17,240.85

141 0119 REAL PLAN CONSULTANTS 1,739,650.50

142 0119 6% VAT FROM REAL PLAN 99,408.60

143 0119 5% W/TAX FROM REAL PLAN 82,840.50

144 0122 CONCORDIA BUILDING & CIVIL ENG 3,940,782.50

145 0122 6% VAT FROM CONCORDIA 291,909.80

146 0122 3% W/TAX FROM CONCORDIA 145,954.95

147 0122 10% RETENTION FROM CONCODIA 486,516.30

148 0124 CHINA WUYI CO. LTD 7,027,046.90

149 0124 CHINA WUYI CO. LTD 2,218,003.50

150 0124 W/TAX FROM CHINA WUYI 255,179.45

151 0124 VAT FROM CHINA WUYI 1,360,916.90

152 0124 10% RETENTION 850,598.05

153 0127 SINOE CONSTRUCTION LTD 3,077,778.85

29



154 0127 6% VAT FROM SINOE 216,166.50

155 0127 3% W/TAX FROM SINOE 125,376.55

156 0127 10% RETENTION 417,921.90

157 0129 YELLOW HOUSE LIMITED 923,108.25

158 0129 6% VAT FROM YELLOW 58,350.70

159 0129 3% W/TAX FROM 33,843.40

160 0129 10% RETENTION FROM YELLOW HSE 112,811.35

161 0131 LAWRENCE WAINAINA 568,390.70

162 0131 W/TAX FROM LAWRENCE 29,915.30

163 0133 SAMUEL MUGO KIMANI 272,438.10

164 0133 5% W/TAX FROM SAMUEL 14,338.85

165 0135 CHINA WUYI CO. LIMITED USD 7,364,396.75

166 0135 CHINA WUYI CO. LIMITED KSHS 3,867,466.15

167 0135 3% W/TAX FROM CHINA WUYI 347,377.20

30



168 0135 6% VAT FROM CHINA WUYI 694,754.45

169 0135 10% RETENTION FROM CHINA WUYI 1,157,924.00

170 0136 INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS 1,055,953.45

171 0136 17.5%W/TAX FROM ICT 167,992.60

172 0136 6% VAT FROM ICT 57,597.45

173 0137 DUALE INVESTMENT LIMITED 1,828,539.90

174 0137 6% VAT FROM DUALE 115,002.50

175 0137 3% W/TAX FROM DUALE 57,501.25

176 0137 10% RETENTION FROM DUALE 222,338.20

177 0138 SEURECA CONSULTING ENGINEERS 1,387,020.85

178 0138 6% VAT FROM SEURECA 233,603.50

179 0138 5% W/TAX FROM SEURECA 73,001.10

180 0143 GIBB 210,771.35

181 0143 6% VAT FROM GIBB 12,044.05

31



182 0143 5% W/TAX FROM GIBB 10,036.70

183 0147 H.K BUILDERS 2,621,663.00

184 0147 6% VAT FROM H.K 180,804.35

185 0147 3% W/TAX FROM H.K 90,402.20

186 0147 10% RETENTION HK BULDERS 301,340.60

187 0149 EGIS INTERNATION 1,537,972.00

188 0149 5% VAT FROM EGIS 69,278.00

189 0152 TRACTOR DEN 2,006,748.90




193 0154 NJUCA CONSOLIDATED 1,462,816.00

194 0154 6% VAT FROM NJUCA 90,483.50

195 0154 3% W/TAX FROM NJUCA 45,241.75

32



196 0154 10% RETENTION FROM NJUCA 150,805.80

197 0156 SINOE 2,461,166.25

198 0156 6% VAT FROM SINOE 172,858.95

199 0156 3% W/TAX FROM SINOE 100,258.25

200 0156 10% RETENTION FROM FROM SINOE 334,194.05

201 158 CHINA WUYI 4,886,254.50

202 158 CHINA WUYI 2,566,051.90


204 158 VAT FROM CHINA WUYI 460,967.40


206 161 TEVENE ENTERPRISES 1,944,270.00

207 161 SIVAD CONSTRUCTION LIMITED 1,139,370.50

208 0163 6% VAT FROM SIVAD 91,467.35

209 0163 3% W/TAX FROM SIVAD 45,733.65

33



210 0163 10% RETENTION FROM SIVAD 176,836.90

211 0165 MARY MUMBI KARIUKI 1,204,645.85

212 0165 5% W/TAX FROM 63,402.40

213 167 DIWAFA INVESTMENT 6,950,233.05

214 0169 JOMAT CONSTRUCTION LIMITED 2,149,267.25

215 0169 6% VAT FROM JOMAT 135,174.05

216 0169 3% W/TAX FROM JOMAT 67,587.05

217 0169 10% RETENTION JOMAT 261,336.50

218 0171 NAANCHANG FOREIGN ENGINEERING USD 6,868,857.05

219 0171 NAANCHANG FOREIGN ENGINEERING KSHS 1,717,214.30



222 0174 6% VAT FROM NAANCHANG 31,246.70

223 0174 3% W/TAX FROM NAANCHANG 156,233.50

34



224 0174 10% RETENTION FROM NAANCHANG 52,635.90

225 0177 JBG GAUFF 731,078.25

226 0177 16% VAT FROM JBG 123,129.00

227 0177 5% W/TAX FROM JBG 38,477.80

228 0180 JBG GAUF 178,190.60

229 0180 16% VAT FROM JBG 30,011.05

230 0180 5% W/TAX FROM JBG 9,378.50

231 0182 ASHBRO INTERNTIONAL 4,467,016.75

232 0184 ASHBRO INTERNTIONAL 4,378,004.60

233 0186 CONCORDIA 3,957,281.90



236 0186 10% RETENTION FROM CONCORDIA 483,612.20

237 0188 SINOHYDRO 10,315,422.55

35


PENDINGSPAYMENT FOR GOK COMIPONENT AS AT 30th .IUNE 2017

238 0188 SINOHYDRO 2,176,870.10

239 0188 W/TAX FROM SINOHYDRO 401,985.60

240 0191 ANTHONY MOIRE 312,686.35

241 0191 ANTHONY MOIRE W/TAX 16,457.15

242 0193 GIBB AFRICA 289,363.80

243 0193 GIBB AFRICA VAT 16,535.05

244 0193 GIBB AFRICA W/TAX 13779.25

245 0195 ASSOCIATED ARCHITECTS 1,077,048.00

246 0195 ASSOCIATED ARCHITECTS W/TAX 51,288.00

247 0195 ASSOCIATED ARCHITECTS VAT 61,545.60

248 0197 IMPULSO KENYA LIMITED 186,625.90

249 0197 IMPULSO KENTA W/TAX 9,822.40

250 0197 IMPULSO KENTA VAT 31,431.70

251 199 ANSAKON COMPANYA LTD 671,145.30

36



252 205 NJUCA CONSTRUCTION 2,706,454.80

253 205 VAT NJUCA CONSTRUCTION 170,217.30

254 205 W/TAX NJUCA 85,108.60

255 205 10% RETENTION FROM NJUCA 329,086.75

256 207 INSTA PUMPS 533,461.70

257 209 UNIBEE CONSTRUCTION LTD 2,528,851.20

258 211 AFRICA DEVELOPMENT 1,404,467.30

259 211 AFRICA DEVELOPMENT W/TAX 66,879.35

260 211 AFRICA DEVELOPMENT VAT 80,255.25

261 212 AFRICA DEVELOPMENT 19,225.30

262 212 AFRICA DEVELOPMENT W/TAX 915.5

263 212 AFRICA DEVELOPMENT VAT 1098.6

264 213 LINK SOFT 167,400.20

265 213 LINK SOFT VAT 9,386.95

37



266 213 LINK SOFT W/TAX 4,693.45

267 214 GL WILIAMS 2,046,301.25

268 0227 NATION MEDIA 38,100.00

269 228 NATION MEDIA 48,240.00

270 229 NATION MEDIA 48,240.00

271 230 NATION MEDIA 38,100.00

272 231 NATION MEDIA 30,480.00

273 232 NATION MEDIA 30,480.00

274 233 NATION MEDIA 30,480.00

275 234 NATION MEDIA 11,581.45

276 235 NATION MEDIA 38,592.00

277 236 NATION MEDIA 38,100.00

278 237 NATION MEDIA 38,592.00

279 238 THE STANDARD GROUP 13,920.00

38






283 242 THE STAR LIMITED 42,094.10


285 244 MEDIA MAX NETWORK 34,637.45







292 252 VAT SINOE CONSTRUCTION 1,738,339.40

293 253 VAT SINOE CONSTRUCTION 596,850.75

39


PENDINGS PAYMENT FOR GOK COMPONENT AS AT 30th,JUNE 2017

294 255 EGIS EAU(PS) 5,537,902.45

295 256 ASTEC GLOBAL CONS (PS) 6,156,470.50

296 257 EGIS EAU(PS) 7,585,372.60

297 258 VAT NORPY GENERAL SUPPLIERS 534,832.75

298 259 VAT EASCO AFRICA LTD 46,551.70

299 260 VAT EGIS INTERNATIONAL 6,020,196.70

300 262 ANTHONY MOIRE 0.50

301 287 VAT YELLOW HSE 547,109.30

302 287 W/TAX YELLOW HSE 317,323.15

303 274 EASCO AFRICA LTD 366,600.00

304 274 VAT EASCO AFRICA LTD 23,400.00

305 273 KENYA SCHOOL OF GOVRNMENT 38,419.20

306 272 KENYA SCHOOL OF GOVRNMENT 17,817.60

307 271 KENYA SCHOOL OF MONETARY STUDIEDSMS 33,408.00

40


PENDINUS PAYMENT FOR GOK COMPONENT AS AT 30th .JUNE 2017









316 275 DASAN CONSULTANTS 1,517,061.90


318 277 VAT DASAN CONSULTANTS 42,575.20

319 277 W/TAX DASAN CONSULTANTS 35,479.35

320 275 VAT DASAN CONSULTANTS 86,689.25

321 275 W/TAX DASAN CONSULTANTS 72,241.00

41



322 280 GIBB AFRICA LTD 1,130,546.75

323 280 VAT GIBB AFRICA LTD 64,602.65

324 280 W/TAXGIBB AFRICA LTD 53,835.55

325 281 GIBB AFRICA LTD 2,026,406.75



328 282 PINNIE AGENCY LIMITED 3,147,727.90

329 282 VAT PINNIE AGENCY LIMITED 198,971.45

330 282 W/TAX PINNIE AGENCY LIMITED 115,403.40

331 282 10% RETENTION PINNIE AGENCY LIMITED 384,678.05

332 283 NJUCA CONSOLIDATED CO LTD 804,366.15

333 284 VAT NJUCA CONSOLIDATED CO LTD 50589.05

334 284 W/TAX NJUCA CONSOLIDATED CO LTD 25,294.50


42



336 287 6% VAT YELLOW HOUSE LIMITED 47,574.70

337 287 3% W/TAX YELLOW HOUSE LIMITED 27,593.35

338 287 10% RETENTION FROMYELLOW HOUSE LIMITED 91,977.85

339 294 H.K BUILDERS 2,518,274.70

340 294 6% VAT FROM H.K 173,674.10

341 294 3% W/TAX FROM H.K 86,837.05


343 296 CHINA WUYI 4,077,279.60

344 296 CHINA WUYI 2,141,212.80




348 302 CHINA WUYI 6,317,495.85

349 302 CHINA WUYI 3,158,211.15

43






353 306 SIVAD CONSTRUCTION LIMITED 935,750.00

354 306 6% VAT FROM SIVAD 98,962.65

355 306 3% W/TAX FROM SIVAD 49,481.50

356 306 10% RETENTION FROM SIVAD 191,328.40


358 308 6% VAT YELLOW HOUSE LIMITED 139,107.75

359 308 3% W/TAX YELLOW HOUSE LIMITED 80,682.50

360 308 10% RETENTION FROMYELLOW HOUSE LIMITED 268,941.75

361 310 NJUCA CONSOLIDATED CO LTD 2,684,091.35

362 310 VAT NJUCA CONSOLIDATED CO LTD 227,078.75

363 310 W/TAX NJUCA CONSOLIDATED CO LTD __113,539.40

44



364 310 10% RETENTION NJUCA CONSOLIDATED CO LTD 439,019.00

365 312 NJUCA CONSOLIDATED CO LTD 1,902,720.75

366 312 VAT NJUCA CONSOLIDATED CO LTD 151,330.00

367 312 W/TAX NJUCA CONSOLIDATED CO LTD 87,771.40

368 312 10% RETENTION NJUCA CONSOLIDATED CO LTD 292,571.35

369 314 H.K BUILDERS 3,338,038.25

370 314 6% VAT FROM H.K 230,209.55

371 314 3% W/TAX FROM H.K 115,104.80


373 316 TRACTOR DEN 1,045,957.50




377 319 CONCORDIA BUILDING & CIVIL ENG 1,899,299.65

45





380 319 10% RETENTION FROM CONCODIA 299,815.15

381 321 SAI CONSULTANT 857,638.20

382 321 VAT FROM SAL 166,329.80

383 321 17.5% W/TAX FROM SAI 181,923.25

384 323 SAI CONSULTANT 914,506.00

385 323 VAT FROM SAI 177,358.70

386 323 17.5% W/TAX FROM SAl 193,986.15

387 326 SGS 610,152.15

388 326 VAT SGS 34,865.85

389 326 W/TAX SGS 5,810.95



46


PENDINGS PAYMENT FOR GOK COMPONENT AS.AT 30th .ILINE 2017

392 330 6% VAT FROM NAANCHANG 457,378.15

393 330 3% W/TAX FROM NAANCHANG 228,689.10

394 330 10% RETENTION FROM NAANCHANG 762,296.95

395 333 GROUP HUITS 2,801,300.40

396 333 VAT FROM GROUP HUITS 471,798.00

397 333 W/TAX FROM GROUP HUITS 147,436.80

398 336 IMPULSO 421,094.95

399 336 W/TAX FROM IMPULSO 20,052.15

400 336 VAT FROM IMPULSO 24,062.55

401 337 ICT 154,492.80

402 337 W/TAX FROM ICT 24,578.40

403 337 VAT FROM ICT 8,426.90

404 338 ICT 393,502.40

405 338 W/TAX FROM ICT 62,604.70

47


PENDINGS PAYMENT FOR GOK COIPONENT AS AT 30th .JLINE 2017

406 338 VAT FROM ICT 21,463.80

407 339 ICT 334,749.70

408 339 W/TAX FROM ICT 53,255.30

409 339 VAT FROM ICT 18,259.15

410 340 ICT 261,003.00

411 340 W/TAX FROM ICT 41,522.35

412 340 VATFROMICT 14,236.25

413 341 PINNIE AGENCY LIMITED 3,340,241.30

414 341 VAT PINNIE AGENCY LIMITED 210,078.05

415 341 W/TAX PINNIE AGENCY LIMITED 105,039.05

416 341 10% RETENTION PINNIE AGENCY LIMITED 406,150.90

417 343 H.K BUILDERS 2,743,278.65

418 343 6% VAT FROM H.K 189,191.65

419 343 3% W/TAX FROM H.K 94,595.80

48




421 345 GATH 341,124.00

422 345 VAT GATH 19,492.80

423 345 5% W/TAX GATH 16,244.00

424 346 GEOMAPS 2,978,377.50

425 346 VAT GEOMAPS 170,193.00

426 346 W/TAX GEOMAPS 141,827.50

427 348 CHINA WUYI 8,200,400.90

428 348 CHINA WUYI 3,017,128.70




432 351 JOMAT 777,470.75

433 351 6% VAT JOMAT 18,897.50

49



434 351 3% W/TAX JOMAT 24,448.75

435 351 10% RETENTIION JOMAT 94,535.20

436 354 GIBB AFRICA LTD 496,867.95



439 355 GIBB AFRICA LTD 535,069.60




443 MITUBIRI LAND (NATIONAL LAND COMMISSION) 82,470,000.00

TOTAL 461,150,012

50

Nairobi Metropolitan Services Improvement ProjectStatement of Budget PerformanceFor the year ended June 30, 2017

ANNEX 3 - SUMMARY OF FIXED ASSET REGISTER

Purchases/Additions inthe lear DisponIs in_the er

OReinACost (KShs) (KShs) Closing_ ost

(KShs) 2016/17 2016/17 (KShs)

Asset class 2016/17 -2017

1a) (b) (c) d)= (i)+ (b)-(c)

Land 53,000,000 53,000,000Buildings and structures - -Moter Vehicles 15,560,000 28,920,000 - 44,480,000Water Bowsers (3 ) (Multilinemoters) 19,020,000 - 19,020,000Office equipment, furniture andfittings 3,510,000 3,510,000ICT Equipment, Software andOther ICT Assets 12,489,000 12,489,000Other Machinery and Equipment(7 Fire fighting Equipt)JosHanseen) 209,461,948 5,485,289 214,947,237Total 256,530,948 90,915,289 - 347,446,237

51

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