Governors ask Treasury to release county funds

The National Treasury has starved counties of Sh77 billion in this financial year which ends on June 30.

And now the Council of Governors wants the money disbursed immediately to enable the devolved units utilise the monies as planned for 2017/18 financial year.

'UNFAIR'

CoG Chairman Josphat Nanok on Thursday complained it is unfair that the national government share is not subject to tranche disbursements like the counties which has subsequently affected service delivery.

Mr Nanok equated the pending amount to a third of the total disbursement counties were to receive this financial year.

“This is unfair and should be rectified. The frequent changes in the procedure and requirements for county governments funds approved by the Controller of Budget (CoB) is disrupting delivery of service and this seems to be affecting county governments and not the national one.

“We expect the CoB to agree with the council on what is required at the beginning of the year and not in every month,” Mr Nanok, also Turkana Governor, said.

On Friday, governors will be meeting for the sixth national and county governments coordinating summit and the issue is expected to top the deliberations.

Sources within the council said county bosses will be demanding the release of the pending billions be fast-tracked.

They will also be seeking to strengthen the role of counties in security matters.

PENDING BILLS

The acute shortage of funds has been compounded by the little amount counties have so far collected in local revenue. The shortfalls in revenue collection at the counties coupled with over-commitment of resources has also been blamed for ballooning counties pending bills.

This is not the first time governors are complaining of delayed disbursement as a financial year comes to a close.

Services were nearly brought to a halt in 2016/17 after Treasury delayed in disbursing Sh25 billion.

The Controller of Budget Agnes Odhiambo said in her report of county spending that although Treasury had disbursed the full allocation by the end of that financial year, Sh25.5 billion was allocated to the counties on June 30, 2017, the last day of the financial year.

“If these monies are not disbursed within the week, and latest on June 25, counties run the risk of accruing pending bills which should have been paid within the current financial year,” Mr Nanok warned.

CONTRABAND GOODS

Governors have also delved into the issue of contraband goods seized mostly in their counties and now want President Kenyatta to ban the importation of sugar, rice and fertilizer.

‘It is our considered opinion that the importation is stopped because it is the only to secure the nation. Counties have all it takes to facilitate the production of these commodities locally,” Mandera Governor Ali Roba said.

The county bosses also asked the national government to develop clear linkages with the counties to power the ambitious Big Four agenda through structured consultation, coordination and cooperation.

They said proper coordination was crucial in implementing President Kenyatta’s legacy because most of the issues at the heart of the President's vision are devolved.