• They claimed the release of cash has become discretional as the CS decides which county should receive the cash, the amount and the time of disbursement.
• As a result, crucial services have suffered, projects stalled, salaries delayed and pending bills ballooned.
Image: FILE
The National Treasury has come under sharp criticism from governors for withholding cash running into billions in what they term the biggest threat to devolution.
Governors on Tuesday called on senators to summon Treasury CS Ukur Yatani to explain what they called inordinate delays in releasing cash.
They said the Treasury is 'sitting on' billions of shillings of donor cash intended for counties.
The county bosses were spoke during a meeting of the leadership of the CoG and the Senate Devolution and Intergovernmental Relations committee at the senate chambers on Tuesday.
The committee is chaired by Homa Bay Senator Moses Kajwang.
The governors claimed release of cash has become discretional and the CS decides which counties should receive cash, how much and when.
As a result, crucial services have suffered, projects stalled, salaries delayed and pending bills have ballooned over time.
“Constitution Article 219 is very clear that the equitable share to the counties should be done without undue delay and also without deductions. But now it has been made discretional,” Meru Governor Kiraitu Murungi said.
Murungi, who chairs the CoG's Justice committee, said some counties received disbursements three months ago. This scenario of deprivation has disrupted operations and almost brought counties to their knees, he said.
“It is urgent Treasury be summoned because this is gross violation of the Constitution. There are some counties that have not paid for December salaries. So it is three months arrears,” he said.
The Treasury last released the county cash on January 20, days after the governors threatened to shut down services because of the prolonged delays by the Treasury to release the money.
Yatani said the Covid 19 pandemic has taken a heavy toll on revenue collection by the Kenya Revenue Authority.
CoG chairman Martin Wambora of Embu and Finance committee chairman Nderitu Murithii said Treasury is yet to release Sh7.4 billion meant for Kenya Devolution Support Programmes and Kenya Urban Support Programmes.
In addition, about Sh8 billion donated by the World Bank to aid the counties fight desert locusts is still in the Treasury.
“These are donor funds, which are specific that if Treasury is unable to disburse, then the lender gets the money back.We plead with the Treasury to do what is needful but also required in law to disburse those amounts,” Murithii said.
The Laikipia governor disclosed that a result of late disbursement, counties accumulated pending bills amounting to Sh113.6 billion as at June 30 last year.
“Some Sh78.8 billion of this amount relates to the city county of Nairobi in which the national government is involved. In that year, there was in excess of Sh36 billion undisbursed by the Treasury,” he said.
Nyamira Senator Okongo Omogeni backed the governors' call to summon Yatani to explain the delays saying issue is urgent and may hurt devolution.
Kajwang said he would engage his Finance and Budget Committee counterpart to summon CS Yatani to explain the incessant delays to release the cash.
“There some of issues we will be handling as a committee and others cascade to the Finance committee and others to the whole house. Delayed disbursement is a serious concern,” he said.
(Edited by V. Graham)