Why Kenya is yet to accept Sh500m for pandemic - Yattani

" To this effect, we have now effected the desired changes."

In Summary

•A smaller amount was to support water provision in slums in Nairobi during the pandemic.

•But in a statement on Friday, Yattani explained that they received communication from the Embassy of Denmark after Supplementary Estimates was approved by the national Assembly on 29th April, 2020.

Treasury Cabinet Secretary Ukur Yattani
Treasury Cabinet Secretary Ukur Yattani

Treasury CS Ukur Yattani has dismissed reports that the government failed to formally accept Sh500m funds from Denmark to fight Covid-19.

According to the reports, most of the money, offered as early as April 16, was expected to support dispensaries and health centres, which are now cash-strapped and lack medicines and protective gear.

A smaller amount was to support water provision in slums in Nairobi during the pandemic.

But in a statement on Friday, Yattani explained that they received communication from the Embassy of Denmark after Supplementary Estimates was approved by the national Assembly on 29th April, 2020.

"...and we can only disburse public funds after appropriation by relevant assembly. Naturally, therefore, National Treasury had to explore alternative means of channelling the resources for the intended entities," he said.

Yattani said the additional funding will require that the original financing agreement, under which the grant is anchored, be amended.

"The amendment to the financing agreement has not been executed by the Treasury and the Government of Denmark by the said dates," he said.

Kenya’s law requires that a financing agreement be in place before such funds from development partners can be spent.

" To this effect, we have now effected the desired changes and signed the amended agreement between ourselves and Denmark," he said.

"... the National Treasury could not authorise expenditure of the funds without the aforementioned procedural motion ."

He said the Treasury earlier wrote to the Embassy of Denmark formally conveying the Government’s acceptance of the additional funding.

".that disbursement of the funds will be fast-tracked once the remaining actions from both sides and remaining formal processes are concluded latest early next week," he said.

Earlier, Danish Ambassador Mette Knudsen said she is unable to justify to his government why the funds are lying idle, yet it was believed Covid-19 was an emergency in Kenya.