Governors have renewed calls to the national government to allow counties borrow money from commercial banks in the event of late disbursements from the National Treasury.
The county chiefs said this will allow them complete projects which normally suffer when cash transfers are delayed, adding that the loans can be liquidated in 12 months.
They want the National Treasury to
fast track
the finalisation of the
short-term
borrowing framework, specifically to ensure that essential services are not delayed.
CoG chairman Josphat Nanok said: "Counties have been hard-pressed to deliver on their functions due to the slow disbursement of funds and lack of borrowing framework."
The county bosses said the Constitution and the Public Finance Management Act, 2012 gives the devolved units power to borrow and fund infrastructure projects.
They said this can be for short-term and long-term projects which are either slowed or left unattended to altogether in the event of late cash payouts.
"We agree with the commission for Revenue Allocation that there is need to re-look at the underpinning principals for the vertical distribution of the revenue."
"This will ensure that the county governments receive adequate resources to carry out their county functions," Nanok said.
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Speaking during a presser at their Nairobi offices on Tuesday, the county bosses further asked the national government to stop duplicating county functions.
Nanok, after a meeting to plan the devolution conference on Tuesday, said it is unfortunate the national government has clung to some devolved functions.
"There is
need
for transfer of some functions whose allocation and performance are still being carried at the national level," he said.
"It is in our conviction that for maximum use of resources, both the county and national government should prioritise their constitutionally-mandated functions."
The governors also called on the EACC to engage in a pre-emptive strategy to prevent and mitigate corruption.
They also supported the County Pension Bill 2017.