Stalemate to blame for low development funds uptake in Nyeri

Nyeri county Finance executive Dr Charles Githinji. He said budget stalemate between the county executive and the assembly for the last two years are to blame for the poor uptake of development funds. PHOTO | JOSEPH KANYI | NATION MEDIA GROUP

What you need to know:

  • Total development projects vote amounts to Sh2.3 billion for the 2016/2017 financial year from an estimated budget of Sh1.8 billion.
  • Controller of Budget raised alarm over high expenditure on personnel emoluments hindering effective budget implementation.
  • It was the second year Nyeri is being ranked last in spending money set aside for development projects.

Budget stalemate between the county executive and the assembly in Nyeri for the last two years are to blame for the poor uptake of development funds, the finance executive Charles Githinji has said.

Mr Githinji said the county spent nothing in development projects between July and December as there was no budget compared to Sh650,000 spent during the same period as earlier reported.

“The poor ranking of Nyeri by the Controller of Budget in absorption of development vote is true. But it has to be understood that the county was operating on vote on accounts for the first half of this financial year,” he said.

This was after the former Nyeri governor Nderitu Gachagua rejected the annual budget estimates passed by the MCAs citing gross violation of the Constitution.

DEVELOPMENT PROJECTS

The total development projects vote amounts to Sh2.3 billion for the 2016/2017 financial year from an estimated budget of Sh1.8 billion.

“We have managed to absorb 75 per cent of the development vote in the last half year which is exemplary good,” he said.

Mr Githinji said the Sh6.5 billion annual budget was approved in November and accessed towards the end of December 2016, hence promoting the lowest record in money allocated for development.

Before the County assembly dissolved they passed a Sh6.4 billion budget and Appropriation Act for the next financial year that starts today.

The controller of Budget Agnes Odhiambo also raised alarm over high expenditure on personnel emoluments as challenges that hinder effective budget implementation.

WAGE BILL

According to Mr Githinji the wage bill was high because they inherited a huge workforce from the former provincial headquarters.

The average wage bill in Nyeri stands at 42 per cent of the total budget.

This was the second year Nyeri was being ranked last in spending money set aside for development projects in 2015/2016 Financial Year.

“During the first half year, the absorption of development was at 19 per cent but by the end of the same year, we performed well jumping to 63 per cent in project absorption rate,” he said.

The Sh6.3 billion budget for that year was approved in October 2015.