Treasury ordered to release Sh79 billion to counties within seven days

County governments will within seven days receive Sh79.12 billion to restore their normal operations after months of a cash crunch.

This after the senators on Thursday approved the cash disbursement schedule for 2020-21, directing the National Treasury to disburse the cash meant for the entire first quarter of the financial year.

Nairobi will receive the highest amount - Sh3.95 billion for July, August and September out of the annual allocation of Sh15.91 billion.

Turkana will get Sh2.63 billion for the three months out of the annual allocation of Sh10.53 billion, Nakuru will receive Sh2.61 billion out of the total allocation of 10.47 billion while Mandera will get Sh2.55 for the three-month period out of an annual allocation of Sh10.22 billion.

The money will be released to the individual County Revenue Funds (CFR) accounts held at the Central Bank of Kenya.

“The National Treasury should transfer Sh79, 125, 000, 000, the total allocation for the first quarter of the 2020-21 financial year within seven days after approval of the disbursement schedule,” reads a report of the Budget and Finance committee approved by the House.

The money is the total allocation for the first quarter of the year.

It will be released to the individual County Revenue Funds accounts by the Central Bank of Kenya.

“The National Treasury should transfer the equitable share to the counties without undue delay and without deductions as per Article 219 of the Constitution and submit quarterly reports on the transfers to the senate,” reads the report.

The approval came just hours after President Uhuru Kenyatta signed into law the County Allocation of Revenue Bill, 2020, paving the way for the disbursement.

The new law allocates Sh369.87 billion in the current fiscal year to Counties. The amount includes Sh316.5 billion of equitable share and Sh13.73 billion in grants.

The release of cash will be a relief to the devolved units which were thrown into cash crisis following prolonged standoff in the senate over the third basis for sharing revenue among counties.

Some of the counties shut down their operations while others scaled down their activities owing to lack of funds.

However, individual counties will make a requisition to the Controller of Budget to access the funds. 

Recently, controller of Budget Margaret Nyakango disclosed that three out of the 47 counties had not presented their budget to her office for scrutiny and approval to allow for the disbursement of the money.

They are Kitui, Mandera and Wajir counties.

The three devolved units have witnessed wrangled pitting the executive and county assembly, stalling the passage of budgets.

Treasury CS Ukur Yatani has already announced that Sh60 billion was ready for disbursement to the cash strapped once all the enabling legislation were approved.