Services halted as Kenyan counties face financial crisis
Laikipia Governor Ndiritu Muriithi and his Makueni counterpart Kivutha Kibwana during a conference on universal healthcare at Wote town, Makueni County, on April 4, 2018. Many governors are saying they do not have enough funds to implement development programmes. PHOTO | GIDEON MAUNDU | NATION MEDIA GROUP
What you need to know:
- A number of counties have suspended the implementation of some development programmes as they struggle to pay salaries.
Operations have been affected, with procurement and supplies being worst hit.
In the North Rift and Western counties, services have almost ground to a halt.
County governments are yet to receive full allocations of development funds for this financial year as the national government grapples with a cash crisis.
Though most have settled staff salaries, interviews showed that counties have been starved of development cash by the National Treasury.
Operations have been affected, with procurement and supplies being worst hit.
In Mt Kenya, a number of counties have suspended the implementation of some programmes as they struggle to continue paying salaries.
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Others are only paying net salaries but have not remitted deductions to the National Hospital Insurance Fund, National Social Security Fund, pension, bank loans, sacco contributions and others.
Tharaka-Nithi Governor Muthomi Njuki has proposed fiscal consolidation measures, including stopping all international travel and other avoidable costs in order to pay salaries.
He said just two months to the end of the financial year, his county has received only 50 per cent of its share from the Treasury, instead of 75 per cent.
“The disbursement of cash by the Treasury is poor and this has made county governments concentrate on priorities,” Mr Njuki said.
Laikipia Deputy Governor John Mwaniki said the administration has paid its more than 1,800 employees their March salaries but has not honoured the statutory deductions.
SETTLE BILLS
He admitted that the county government is facing problems paying suppliers.
“We will pay them almost three times the cost of commodities once the money becomes available,” Mr Mwaniki said.
“For continued supply of goods and services to the devolved government, we have agreed to pay a heavy penalty since we cannot settle the bills promptly.”
The situation is not different in Murang’a.
The construction of Murang’a County Creameries plant, which was expected to be completed this month has stalled, leading to an increase in milk prices.
However, the situation in Isiolo is different.
County secretary Ahmed Galgalo said the devolved government is offering all services.
STALLED
In the North Rift and Western counties, services have almost ground to a halt.
Bungoma Governor Wycliffe Wangamati yesterday said counties have not received any funding since October 2017, derailing services.
The situation is the same in Uasin Gishu and Baringo counties where implementation of projects is down due to lack of cash.
Uasin Gishu Governor Jackson Mandago singled out completion of Kipchoge Keino Stadium as one of the stalled projects.
West Pokot County finance and planning executive Francis Kitalawiyan said completion time of some projects will be affected by the cash crunch.
“The delay has greatly affected operations. Health, bursaries, disaster management and public works, the public service and procurement are the most affected. It is hard to work within deadlines when there is no money,” Mr Kitalawiyan said.
LOCAL REVENUE
He admitted that the devolved unit has been struggling to pay workers’ salaries.
Nakuru County employees told the Nation that they are yet to be get their March pay.
Those in Laikipia and Narok counties, the Nation learnt, received their salaries on Friday.
Kericho County last received its allocation in January.
The administration has resorted to using local revenue to run services, according to finance executive Patrick Mutai.
In Kisii, finance executive John Momanyi said the county received the last tranche of funds from the national government — Sh600 million — in November 2017.
“We anticipate nothing but a bleak scenario if the delays continue,” he told the Nation by phone.
HOSPITAL
Lamu Governor Fahim Twaha told the Nation that workers had been paid.
“Our biggest headache is how to finance projects. Construction of roads has stalled because we do not have money,” he said.
Kwale has paid its workers, suppliers and contractors.
Taita-Taveta County employees have not received their March pay.
“The inconsistency in disbursement of funds has crippled services and stalled several projects,” finance executive Vincent Masawi told journalists.
Mombasa County has also paid its employees while the devolved government in Kakamega is struggling to buy drugs for the referral hospital and many other health institutions.
