Services grind to a halt in counties amid funds delay

Governors have resorted to using locally collected revenue and bank loans to run services in counties due to the Treasury’s failure to release funds to the devolved units.

The county bosses Wednesday said the Treasury owed the counties at least four months in arrears, with most operations grinding to a near-halt.

Some counties, however, have received an advance from the national government to pay staff salaries. According to governors, only 19 out of the 47 counties have received part of their disbursement.

CRISIS

Council of Governors finance committee chairman Wycliffe Oparanya on Wednesday told the Nation that a majority of the counties were staring at a financial crisis, with critical services like health being the worst hit by the cash crunch.

The governors have accused Treasury Cabinet Secretary Henry Rotich of flouting the rules, arguing that while the law requires that the national government disburse funds to counties on a monthly basis, this has not been the case.

“The Treasury has instead resorted to releasing monies to the counties on a quarterly basis,” said Mr Oparanya. “Kakamega, for instance, has only received about Sh300 million for salaries, an amount that we have already exhausted.”

But, Mr Rotich has dismissed the claims, saying the delays were occasioned by problems in the County Allocation of Revenue Act, enacted by Parliament in June, and the Cash Disbursements Schedule which the Senate adopted in August.

PROJECTS

“The two were not properly synchronised. But, we shall disburse the funds once the anomaly is rectified,” said Mr Rotich in reference to an advisory issued by Attorney-General Githu Muigai asking the Senate to synchronise the proposed laws.

At the Coast, crucial development projects have stalled due to lack of funds.

Mombasa County communication manager Richard Chacha said they had, however, been authorised by the Controller of Budget to withdraw money from the local revenue account to be used for essential services. “Such as payment of salaries for all county staff, running of hospitals, garbage collection among other essential services,” he said.

His Taita-Taveta counterpart Samuel Mutie said the county was depending on the local revenue collection.

SONKO

In Nairobi, Governor Mike Sonko said the increased revenue collection by his new administration had seen the county through the cash crunch.

In Mt Kenya region, counties have been forced to suspend development projects and sack casual workers. They have also frozen hiring and basic services like garbage collection cannot be offered fully.

In Isiolo, the county government has had to tap into local revenue and seek assistance from donors.

In Embu, the county has been receiving about Sh230 million to pay salaries and run essential operations.

Tharaka-Nithi Governor Muthomi Njuki said he had been able to continue with county operations using the money he has saved from salaries after sacking hundreds of ghost workers.

Reported by Silas Apollo, Vivian Jebet, Alex Njeru, Charles Wanyoro, Winnie Atieno and Collins Omulo