Counties cautioned over spending
What you need to know:
- The counties on the spot are those that have used cash from their equitable allocations to buy or construct residences for governors and speakers, premises for county assemblies, and offices.
- The circular was issued a day after Kakamega Governor Wycliffe Oparanya clashed with members of the county’s assembly over construction of offices for county headquarters.
- The counties on the spot are those that have used cash from their equitable allocations to buy or construct residences for governors and speakers, premises for county assemblies, and offices.
County governments have been asked to stop diverting funds meant for essential services to construction of offices and governors’ residences.
The Commission on Revenue Allocation (CRA) has issued strict guidelines on how the non-core capital projects should be funded.
The instructions are contained in a circular to county executives and clerks of county assemblies.
“The commission has noted a trend where huge amounts of funds meant for essential service financing, such as health services, are diverted to non-core and non-priority projects,” says the circular, which is signed by the commission’s secretary, Mr George Ooko.
It follows concerns that several county governments had been service funds to finance non-priority capital projects.
The counties on the spot are those that have used cash from their equitable allocations to buy or construct residences for governors and speakers, premises for county assemblies, and offices.
Such projects are not a priority in the first five years of devolution, the circular says. “Where there is justification, such projects should be funded using long-term finance of between five to 10 years.”
The circular was issued a day after Kakamega Governor Wycliffe Oparanya clashed with members of the county’s assembly over construction of offices for county headquarters.
The governor has been put on the spot by the members, who have threatened to force the County Executive out of its current offices to house the assembly.
However, Mr Oparanya argued that Sh150 million that the assembly approved in the last financial year for the construction of the new offices was not allocated.
The governor said there were more essential projects that needed urgent attention, citing poor roads and healthcare.
According to the CRA, the challenges that have been experienced in health sectors of some of the counties are due to the growing trend of diverting funds meant for essential services.
The circular, which is dated May 19, was copied to governors, the National Treasury Principal Secretary, county assembly speakers, the Clerk of the Senate and the Controller of Budget.
