Senate now blamed for counties’ cash crunch

Attorney General Prof Githu Muigai. An advisory issued by the AG to Treasury on release of funds to counties cites lack of inclusion of conditional grants to the devolved units in bills passed in June. PHOTO | FRANCIS NDERITU | NATION MEDIA GROUP

What you need to know:

  • The clause set out four conditional grants for a loan from the World Bank.
  • Governors said they were turning to locally collected revenue and bank loans to run services.

Failure by the Senate to harmonise laws authorising the release of funds to counties has been blamed for the cash crunch in the devolved units.

The Senate has been put on the spot over what the National Treasury says are inconsistencies in the County Allocation of Revenue Act and the Cash Disbursements Schedule, both passed in June.

This is according to an advisory issued by Attorney-General Githu Muigai to Treasury, citing lack of inclusion of conditional grants to counties in the bills.

The advisory, contained in a letter of response from the clerk of the Senate, says Prof Muigai singled out grants from the World Bank and Danida.

GOVERNORS

At least 28 counties are yet to get disbursement from the central government, according to the Council of Governors.

“The Attorney-General recommended that the bill be amended,” says the October 5 letter by Senate clerk M A Mohamed to Treasury PS Kamau Thugge.

The clause set out four conditional grants for a loan from the World Bank for the transforming health systems for universal care project, the World Bank’s national agricultural and rural inclusive growth project, a grant by Danida for the universal healthcare in the devolved system programme and a grant from the European Union for instruments for devolution advice and support.

In response, the Senate argued that it made the changes to the bills in accordance with the advisory and advised Treasury to release funds to counties.

“In this regard, the Parliament budget office in consultation with the Treasury prepared a revised Third Schedule to the bill. The bill was then transmitted to the President and assented to,” Mr Mohamed said in the letter.

Governors on Wednesday said they were turning to locally collected revenue and bank loans to run services.

This comes as claims emerged that most devolved units run by governors affiliated to the opposition had not received money from Treasury unlike those headed by Jubilee.

Kakamega Governor Wycliffe Oparanya said most counties were staring at a financial crisis, with critical services being the worst hit by the cash crunch, and accused Treasury of breaking the law.