In March 2000 the Government of Kenya through a legal notice under the Local Government Act established an Interim Oversight Board (IOB) with the mandate to oversee all financial transactions and dealings of the council; assist the council in restructuring its organization and workforce; ensure that all transitions, allotment and other dealings involving land under the authority of the council are carried out in accordance with the relevant law; ensure the proper collection of revenue and recovery of debts; review the financial and administrative systems of the council, including tendering and procurement procedures; review and approve budgets for the council before presentation of the same to the Minister; and ensure regular and timely preparation of financial statements and their external audit. CDC Consulting Group Ltd and its associates were contracted by the Government through World Bank financing to assist the IOB in their effort to achieve the above objectives through updating the accounts of the City Council, which were backlogged for five years; analyzing the financial position of the NCC so that the IOB can plan the range of restructuring and policy alternatives which could be undertaken thereafter. To assist the IOB in arriving at various restructuring alternatives, we recommended improvements on the internal controls, financial management systems, budgeting control procedures and information technology. In addition we assessed the financial position of the Nairobi City Council covering its profitability, liquidity and solvency. Further we developed cash-flow projections under various restructuring options proposed for improvement.