Counties get cash to avert crisis

The Treasury Wednesday agreed to advance Sh29 billion to the 47 county governments to avert a salary crisis next week.

National Treasury Cabinet Secretary Henry Rotich announced that an emergency inter-governmental forum had advised on an urgent stopgap measure to avoid the disruption of services in the counties due to salary delays.

“We have decided to look for some Sh29 billion to lend the county governments for now then we recover (it) when they get their allocations,” said Mr Rotich.

The amount is expected to enable the devolved units to operate for at least two months pending the processing of the County Allocation of Revenue Bill which has been taken back to the Senate by the National Assembly.

“This money will be released as soon as possible so that the county governments can pay salaries at least by early next week.”

The minister was addressing the Press shortly after a meeting with Deputy President William Ruto, members of the Council of Governors led by Mr Isaac Ruto, Controller of Budget Agnes Odhiambo, chairman of the Commission for Revenue Allocation Micah Cheserem and Treasury principal secretary Kamau Thuge.

DELAY CAUSED BY DISAGREEMENTS

Kakamega Governor Wyclife Oparanya and his Kajiado counterpart David Nkedienye were also present. The DP was not at the press conference.

Mr Rotich said that the delay (in releasing the funds) was caused by some disagreements on the Bill after the Senate and the National Assembly differed on bits of its component.

He said the ministry was working with other stakeholders to amend the Public Finance Management Act to allow the counties access to at least 50 per cent of their allocations pending the passage of the requisite finance laws.

The Union of Kenya Civil Servants secretary-general, Mr Tom Odege, had earlier threatened to call members on strike if the salaries were not paid by end of next week.

“Last time so many of our members were forced to suffer unnecessary standing order deductions on their salaries due to the arrogant manner in which the government is treating our pay,” said Mr Odege.

The Bomet governor said they expected an arrangement with the National Government on how to walk out of the pay crisis.

“We hope to have salaries paid by early next week so that we can have service delivery progressing uninterrupted,” he said.

Mr Ruto also said that he had confirmed that salaries for July had been paid to all medical staff including nurses in Homa Bay and Mombasa counties.

Dr Thuge, who also spoke at the press conference, said the current situation was unforeseen and must be worked on to ensure it doesn’t recur. “We must manage this situation by amending the laws concerned so that it doesn’t resurface.”

Chairman of the Senate Finance Committee Billow Kerrow asked senators to always seek bank overdrafts to overcome challenges that may arise following the delay of salaries which, he said, had been occasioned by slow processing of laws.

Elgeyo-Marakwet Senator Kipchumba Murkomen said they would change the Act to allow the county bosses get the money in the future.