Governors fail to spend Sh8bn development cash

What you need to know:

  • Kilifi, Taita-Taveta, Kitui, Busia, Lamu, Meru and Uasin Gishu completed the top 10 list with more than Sh200 million development money stored in their accounts.
  • Most counties are still struggling to absorb millions allocated for development projects although some are also yet to fully utilise its recurrent vote.
  • The Council of Governors’ Chairman Isaac Ruto has been pushing for a referendum to increase the allocation.
  • This financial year, the allocation to the counties rose to Sh226 billion from Sh190 billion in the previous year.

Governors are once again on the spotlight for failing to use billions of shillings allocated to them by the Treasury for development in the past six months.

The county bosses have not used Sh8 billion in spite of complaints by Kenyans that they are yet to see major development projects in their counties.

The money is being held by the Central Bank of Kenya under the respective counties’ accounts.

According to information released by the National Treasury Wednesday, Turkana County absorbed the least amount of money for development and now has Sh1.9 billion remaining in its account.

Marsabit County followed with a Sh532 million balance and Siaya had Sh402 million.

Kilifi, Taita-Taveta, Kitui, Busia, Lamu, Meru and Uasin Gishu completed the top 10 list with more than Sh200 million development money stored in their accounts.

That was the record on January 21, when more money was released to the 47 counties.

Garissa tops counties that have spent their development cash and has only Sh187,000 left in its accounts.

Nairobi is second and has Sh200,000 left.

Others that have used most of their allocations are Mandera (Sh1.7 million), Nakuru (Sh4.8 million) and Wajir (Sh12.8 million).

In total, the counties had Sh8, 037, 412, 077 of the development vote remaining in the accounts as at January 21.

STRUGGLING TO ABSORB

Most counties are still struggling to absorb millions allocated for development projects although some are also yet to fully utilise its recurrent vote.

Governors have defended themselves in the past, saying the allocation was inadequate to finance major projects.

The Council of Governors’ Chairman Isaac Ruto has been pushing for a referendum to increase the allocation.

The county governments also collect revenue.

According to the National Treasury, Mandera has the highest amount of money remaining in its County Revenue Fund at the Central Bank.
It has Sh2.1 billion followed by Kitui, with Sh1.9 billion and then Kilifi Sh1.7 billion.

Normally, the counties deposit the revenues to the accounts although senators have questioned whether all the money collected is channelled to the CBK.
The Treasury also released the fourth and fifth tranche, amounting to Sh105.5 billion, to the counties.

This financial year, the allocation to the counties rose to Sh226 billion from Sh190 billion in the previous year.

Meanwhile, the Senate has begun relooking at the Commission for Revenue Allocation’s recommendations on the formula to be used for cash allocation in the next financial year.

The Senate Finance Committee, chaired by Mandera Senator Billow Kerrow is collecting public views at County Hall, Nairobi, on the recommendations by different stakeholders.