Treasury sends out Sh13 billion to 26 county governments
National Treasury Cabinet Secretary Henry Rotich. The National Treasury on October 23, 2015 released Sh13 billion for 26 county governments in a bid to ease a financial crisis. FILE PHOTO | NATION MEDIA GROUP
What you need to know:
- The money ought to have been wired to the counties by August 15. Due to the delay many counties have borrowed from banks to pay salaries.
- They had received part of the Sh34 billion released earlier by the National Treasury.
- Governors have sought a meeting with President Uhuru Kenyatta to address the delays.
The National Treasury Friday released Sh13 billion for 26 county governments in a bid to ease a financial crisis.
A document obtained from the Central Bank shows that the money was wired to the counties’ accounts on Thursday.
The money ought to have been wired to the counties by August 15. Due to the delay many counties have borrowed from banks to pay salaries.
The Council of Governors Chairman, Mr Peter Munya, said: “Labour disputes may rise in the coming months if this matter is not handled properly.”
He said that many suppliers and contractors have abandoned projects because they have not been paid.
Nairobi, Bomet, Busia, Elegeyo-Marakwet, Garrisa, Isiolo, Kericho, Kiambu, Laikipia, Machakos, Migori, Mombasa, Murang’a, Nandi, Narok, Nyeri, Siaya and Wajir are not part of the counties that received money on Thursday.
They had received part of the Sh34 billion released earlier by the National Treasury.
Governors have sought a meeting with President Uhuru Kenyatta to address the delays.
The Central Bank statement indicates Nairobi, which is the largest recipient of funds has already received Sh3.2 billion since the beginning of the financial year with only Sh60,900 released to fund development. The bank still holds a Sh15 billion balance.
A bank statement from the bank indicated that Sh47 billion has been wired to various county accounts with Sh216 billion balance at the bank.
