Treasury has disbursed more than Sh314 billion to all counties, including delayed funds for the year 2017/18 to enable them pay pending bills and debts.
Treasury CS Henry Rotich said the counties owe suppliers and other creditors more than Sh90 billion.
He said Treasury had discussed with the Council of Governors to ensure counties prioritise delayed payments for suppliers and contractors.
Rotich was speaking on Friday at the Rift Valley Textiles East Africa Limited Company (Rivatex) in Eldoret.
While presenting the 2018/19 budget at Parliament on June 14, Rotich put governors on the spot as the continued shrinking of revenue amounts has caused counties to rely heavily on the national government.
He noted that growing expenditure arrears and improper use of public funds are major challenges in counties.
The 47 counties were among the big winners as they received Sh376.4 billion, up from Sh341 billion the previous year.
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