Deputy President William Ruto yesterday bowed to pressure from governors for the national government to release Sh65 billion for them to pay suppliers' pending bills.
“The National Treasury will release Sh65 billion to pay pending bills without audit queries by end of the month,” Ruto told journalists at his Karen office
The DP, who chairs the Intergovernmental Budget and Economic Council, told governors yesterday that the government will revive collapsed talks between the National Assembly and the Senate for sharing of revenue.
“The national and county governments have also agreed on a framework to end the stalemate on shared revenue, which will consolidate the gains of devolution,” Ruto said after the council meeting.
The government had stood its ground and allocated counties Sh317 billion but governors are demanding Sh343 billion. The disagreement was almost bringing services to a halt due to lack of funds.
On Saturday, the Star exclusively reported that out of the Sh79.6 billion counties pending bills submitted by 41 counties for verification, Auditor General Edward Ouko revealed that only Sh 43.9 billion is legible for settlement.
Ouko declared Sh35 billion illegal payments following a special report demanded by the government during the previous IBEC meeting early this year. The meeting was attended by the Commissioner of Revenue who supported county chiefs and Finance PS Kamau Thuge who represented his ministry.
A leaked report showed that Nairobi county headed by Mike Sonko led with the highest ineligible pending bills at Sh11.3 billion followed by Turkana's Josphat Nanok with Sh3.8 billion.
“Suppliers whose payments have been flagged as ineligible by the Auditor General will have their issues heard and addressed by a special appeal committee in every county,” Ruto said.
On Monday, county chiefs had threatened to boycott yesterday's meeting.
“The move is meant to promote enterprise; local industry and ensure small businesses benefit from an inflow of capital to boost their ventures,” Ruto said.
Ruto said the funds will enhance the ease of doing business, especially with government and strengthen the SME sector.
He added that the development was in tandem with President Uhuru Kenyatta’s directive on Madaraka Day that called for national and county governments to honour their obligations before the end of June.
The meeting that was attended by Treasury Cabinet Secretary Henry Rotich, Auditor General Edward Ouko, Controller of Budget Agnes Odhiambo, Council of Governors chairman Wycliffe Oparanya (Kakamega), governors Wycliffe Wangamati (Bungoma), Ferdinand Waititu (Kiambu), Amason Kingi (Kilifi) and Samwel Tunai (Narok).
Others are Mutahi Kahiga (Nyeri), Sospeter Ojaamong (Busia) and Ndiritu Muriithi (Laikipia). Another IBEC meeting to be held next Monday will be attended by speakers of Parliament and the Senate as well as the parliamentary leadership.
