EXPLOSIVE REPORT

Budget report: Irony of Covid-19 billions lying idle in counties

CoB reveals under-utilization of Covid 19 funds by counties

In Summary

• According to the report, only West Pokot County spent 100 per cent of the Sh25.15 million it factored in the budget to fight the virus.

• The report indicates that Turkana, Nakuru and Nairobi counties allocated the highest amount for Covid-19 activities at Sh858.19 million, Sh603.13 million and Sh576.67 million respectively.

Council of Governors chairman Wycliffe Oparanya with vice chairman Mwangi wa Iria during stakeholders meeting with Devolution conference sponsors in Nairobi on January 21, 2019.
Council of Governors chairman Wycliffe Oparanya with vice chairman Mwangi wa Iria during stakeholders meeting with Devolution conference sponsors in Nairobi on January 21, 2019.
Image: ENOS TECHE

Billions of shillings meant for fighting Covid-19 are lying idle in most county governments’ accounts despite pressure for more resources to contain the spread of the virus, a report has revealed.

The explosive report by the Controller of Budget on the utilisation of Covid-19 funds shows that counties have spent only Sh3.43 billion or 33.2 per cent of the Sh13.1 billion that was made available to them to roll out mitigation measures to contain the spread of the contagion.

This even as the Controller of Budget Margaret Nyakango recommended a prompt audit on the expenditure of the Covid-19 funds by the counties.

 

In what paints a grim picture on the utilisation of the funds, Nyakango says some seven counties did not make disclosures on how they spent their resources in the fight against coronavirus, raising concerns if the funds were put in proper use.

Mombasa Governor Hassan Joho wears the protective gear at the Coast General Hospital Isolation Centre on March 16, 2020.
Mombasa Governor Hassan Joho wears the protective gear at the Coast General Hospital Isolation Centre on March 16, 2020.
Image: JOHN CHESOLI

Nyakango presented the Special Budget Review Implementation Report on the Utilisation of Funds by the County Governments Towards Covid-19 Intervention to the Senate ad hoc committee on Covid-19 Situation in the country on Wednesday.

The committee, chaired by nominated senator Sylvia Kasanga had sought the report following various claims of misappropriations of the Covid-19 cash in the counties.

The irony of the billions lying idle in the accounts comes hot on the heels of a report by the Ministry of Health showing that most counties are still ill prepared, six months after the pandemic hit the country.

The report by the Ministry indicated that most devolved units have not put in place the necessary infrastructure including enhancing isolation bed capacities to fight the global pandemic.

According to the report by the CoB, counties received Sh13.1 billion between March 13, when the Ministry of Health confirmed the first Coronavirus case in the county, and July 31, 2020.

They funds consisted Sh7.36 billion from the National Government through the Ministry of Health for the establishment of quarantine and isolation facilities and allowances for front-line health care workers.

 

Some Sh350 million was provided by DANIDA as grant support for Level 2 and 3 health facilities and Sh5.36 billion from county own funds.

The report indicates that Turkana, Nakuru and Nairobi counties allocated the highest amount for Covid-19 activities at Sh858.19 million, Sh603.13 million and Sh576.67 million respectively.

The CoB has observed that when the first Covid-19 case in Kenya was reported, there were no clear guidelines from the national government on the role of the counties in the management and response to the virus cases.
CoB Report

Those with the lowest budget allocations were Lamu (Sh37.96 million), Tana River (Sh71.08 million) and Taita Taveta (Sh76.79 million).

However, Nakuru, Wajir and Kiambu counties spent the highest amount of their allocations on Covid-19 activities.

Nakuru spent Sh311.97 million, Wajir spent Sh255.33 million while Kiambu incurred Sh245.94 million on fighting the pandemic.

Interestingly, despite the devolved units receiving grants and allocating their own resources, seven counties; Bomet, Embu, Kirinyaga, Lamu, Mandera, Marsabit and Nairobi did not report any expenditure towards Covid-19 interventions, raising concerns about the whereabouts of the money.

They received grants and allocated the following amounts towards the fight against the pandemic; Bomet (Sh153.28 million), Embu (Sh146.02), Kirinyaga (Sh164.68 million), Lamu (Sh37.96 million), Mandera (Sh314.47), Marsabit (Sh127.04 million) and Nairobi (Sh576.66 million).

“Mombasa County had not provided a report on the utilisation of Covid-19 funds by the time of finalizing this report,” the report reads in part.

Nairobi, Mombasa and Kiambu are the country’s Covid-19 epicentres.

Therefore their failure to disclosure expenditure of Covid 19 funds disbursed to them could raise an eyebrows.

According to the report, only West Pokot County spent 100 per cent of the Sh25.15 million it factored in the budget to fight the virus.

Other counties that posted impressive utilisation of their allocations on Covid-19 activities are Siaya (98.6 per cent), Wajir (92.0 per cent),Taita Taveta (Sh85.9 per cent), Laikipia (68.8 per cent) and Nakuru (60.9 per cent.)

Some of the poor spenders are Trans Nzoia which spent Sh3.0 million or 0.9 per cent of 341.02 million allocated to fight the virus and Nyeri which only spent Sh1.95 million or 1.3 per cent of Sh154.45 million budget.

Kisii only spent 11.7 million or three per cent of an allocation of 398.03 million and Turkana only spent Sh31.85 million or 4.5 per cent of 712.31 million it allocated to fight the virus during the period under review.

Others are Migori (14.1 per cent), Uasin Gishu (10.0 per cent), Samburu (4.9 per cent), Meru (23.3 per cent), Tana River (20.7 per cent) and Nandi (10.6 per cent).

CoB Nyakango observed that lack of adequate support of the counties by the national government on the proper utilisation of the funds as well as release of the cash close to the end of the last financial year, could have contributed to the poor utilisation of the funds.

“Consequently, several county governments could not withdraw these funds which have remained underutilised as of July 31, 2020,” the report says.

“The CoB recommends that key national government institutions should support county governments as they implement the budgets for Covid-19 in the current financial year to ensure quality of services and goods being procured meet the set standards.”

CoB raised concerns that while the counties have spent the billions in the fight against the virus, there is need for prompt audit to ensure the finds are used properly.

“This expenditure on Covid-19 is yet to be audited and the CoB recommends that the county internal audit committees and the national treasury should conduct audits to give an assurance on value for money and whether the funds were utilised as required by law,” reads the report.

Nyakango further noted that most counties have not factored the grants in their budgets thus posing the risk of the funds being misappropriated. She recommends that the counties to capture the grants in their 2020-21 budgets.

The report shows that counties spent the Covid-19 funds on training of health workers, renovating health facilities, procurement of personal protective equipment (PPEs) and Covid-19 sensitisation.

Others used the money on procurement of ICU equipment, construction of HDU and ICU units, payment of allowances, drugs, catering services, purchase of ambulances and setting up of quarantine and isolation centres.

WATCH: The latest videos from the Star