Cash-strapped counties can now breathe a sigh of relief after the National Treasury on Thursday announced disbursing Sh24.6 billion to the devolved units.
Treasury CS Ukur Yatani said his Ministry released the exchequer on Wednesday as part of the counties' equitable share.
The funds will alleviate the pain the county staff, supplies and contractors have endured for months due to delays by the Treasury to release the cash.
The Council of Governors (COG) had threatened to shut down services and seek legal redress to compel the Treasury to release the cash.
According to COG, counties had gone for up to four months without receiving the exchequer, leading to massive disruptions of county operations and delayed salaries.
Yatani, however, said that with the release of the funds, total balances for various counties held at the CBK stands at Sh61.4 billion.
“In this respect, we once again appeal to them to make full and timely use of these funds, as additional disbursements from exchequer are made in due course,” Yatani said in a statement to newsrooms.
The CS urged county governments to prioritise settlement of pending bills to suppliers and other statutory dues to enabled concerned institutions to discharge their mandates effectively.
“Meanwhile, noting the general improvement of the economy and in particular positive revenue performance since December 2020, the National Treasury and Planning will prioritise disbursements to county governments, noting their critical obligations of service delivery to the Kenya citizens,” the CS said.
