Relief for counties as Treasury releases Sh29.6bn allocations
Council of Governors chairperson Anne Waiguru (centre) with her colleagues during a media briefing in Nairobi on December 5, 2022. The National Treasury has released Sh29.6 billion to counties as equitable share of revenue for the month of March following fresh threats of a shutdown by governors.
The National Treasury has released Sh29.6 billion to counties as equitable share of revenue for the month of March following fresh threats of a shutdown by governors.
Council of Governors (CoG) chairperson Anne Waiguru (Kirinyaga) said the amount was disbursed on Wednesday.
The county chiefs last week issued fresh threats to shut down operations in counties should the national government fail to release Sh94 million meant for the devolved units.
The governors’ threats came amid pressure by senators to summon Treasury Cabinet Secretary Njuguna Ndung’u over the continued delay in the disbursement of funds to counties.
“The National Treasury disbursed Sh29.6 billion March allocation yesterday [Wednesday]. I assume the April and May allocations will follow soonest and as previously agreed,” said Ms Waiguru.
County governments are owed at least Sh94.4 billion n outstanding Exchequer disbursements. The outstanding funds are allocations for the months of March and April with the May disbursement due more than a week ago.
The delayed disbursements are Sh29.7 billion for March, Sh33.3 billion for April and Sh31.4 billion for May 2023.
The Senate County Public Investments and Special Funds committee had invited Prof Ndung’u to appear before them on Tuesday next week to explain the continued delays.
CS criticised
Committee chair Godfrey Osotsi (Vihiga) criticised the CS for reneging on an agreed resolution that the national government will release the outstanding allocations before May 15.
He said Prof Mr Ndung’u appeared before the committee in April and committed to releasing the funds on the agreed date. Treasury is required by law to release funds to counties by the 15th of every month.
“After our meeting, they only released the February allocation but are yet to release March and April and yet they promised to do that before May 15. We did a press conference and the resolutions were agreed upon. This is complete contempt of Parliament,” said Mr Osotsi.
CoG Finance Committee chair Fernandes Barasa (Kakamega) said governors met last Friday to discuss the matter and take a final decision on a possible move to stall operations in the 47 counties.
“We are assessing the possibility to shut down counties if the National Treasury will continue reneging on the promise for timely release of funds and ensure full absorption by counties,” said Mr Barasa.
Nyeri Governor Mutahi Kahiga had vowed to send workers employed by the county government home should the National Treasury fail to remit funds by today.
