Counties in crisis as Treasury delays funds
National Treasury Principal Secretary Kamau Thugge (left), flanked by Cabinet Secretary Henry Rotich, speaks during the launch of Sector Working Groups at KICC on September 15, 2017. Not all counties have received the equitable share of funds. PHOTO | DIANA NGILA | NATION MEDIA GROUP
What you need to know:
- The counties are facing interruptions in service delivery and development projects had stalled.
- Mr Nanok added that the counties have been forced to turn to commercial banks for loans to pay their staff salaries.
County governments are facing a cash crunch as the National Treasury has failed to disburse funds to the devolved units for the last four months.
Council of Governors chairman Josphat Nanok in a letter addressed to the Treasury Cabinet Secretary Henry Rotich said counties are in financial turmoil and cannot meet their obligations.
The counties are facing interruptions in service delivery and development projects had stalled, he noted.
SERVICES
Mr Nanok added that the counties have been forced to turn to commercial banks for loans to pay their staff salaries, fund service delivery and development projects.
“The purpose of this letter is therefore to inform you that legally, the National Treasury is under obligation to release all monies accrued for the past four months to the county governments.
"The continued delay and breach of the law has led to untold suffering,” Mr Nanok said.
ALLOCATION
So far, only 19 counties have received part of their full disbursements.
Bomet received Sh376.8 million, Busia Sh408 million, Embu 308.6 million, Homa Bay 456.6 million, Isiolo Sh264.2 million, Kericho Sh365.7 million, and Kiambu Sh705.3 million, among others.
Mr Rotich said that the delay in disbursement of the funds was due to existence of variance between the Senate’s county allocations schedule and and those approved in County Allocation of Revenue Act.
