Financial system hampering devolution: Governors

Governors have expressed concern over the Integrated Financial Management Information System (IFMIS), claiming it is being used to limit their access to the devolved funds.

Council of Governors chairman Peter Munya noted that the “system shuts down centrally before the end of any financial year” therefore dictating how the money meant for counties is spent.

Mr Munya said governors would propose a Constitutional amendment so that county governments be allowed to develop their own revenue collection information technology systems.

“Counties are having a problem with the technology-based accounting system because it seems to be shutting down at certain times of the year. We experienced the same last year and it is very unfortunate if it is deliberate because if the problem persists, we will be forced to rethink about using that system,” Mr Munya said.

He was speaking at the Meru National Park on Saturday which delegates who attended the county’s international conference were visiting.

'CREATING A CRISIS'

The Meru governor wondered whether the counties have financial autonomy by plugging into the Treasury’s system instead of directly getting their money to spend as they budget.

He argued that IFMIS was designed for a centralised system of government and does not ensure the independence of the counties.

“Counties are distinct. The fact that we are relying on an inefficient government-run financial technology system means that we are not paying salaries and services on time thus creating a crisis. We will have to rethink the agreement to extend the system to the counties,” Mr Munya said.

IFMIS is meant to ensure that the national and county governments raise, manage and spends revenue by accounting for it. It is also meant to automate public financial management to ease transactions, eradicate theft of public funds and further allow controls on expenditure.

The governor added that some of the delegates from various counties who attended the Meru conference failed to get their transport allowances due to the system's failure.

“Although I have confirmed that Meru’s systems were still working by Friday, several counties have reported a breakdown. There are billions yet to be released to the counties that are still stuck at the Treasury,” Mr Munya said.

Last week, Tharaka-Nithi Governor Samuel Ragwa blamed the health workers' strike on IFMIS, saying it takes a long time to process payments for county workers.

“IFMIS, which is the new payment system, caused the mess because we needed more time to process unlike other times when we could directly pay salaries once the money is deposited,” the governor said.