14 DAYS TO YEAR END

Treasury yet to release Sh70 billion to counties

It has disbursed Sh290.07 billion out of Sh370 billion

In Summary
  • The delays have affected payments of salaries to county staff, often triggering protests and demonstrations.
  • Last month, Homa Bay workers downed their tools, demanding clearance of two months arrears.
Governors James Ongwae (Kisii), Anyang' Nyong'o (Kisumu) and Abdi Mohamud (Wajir) address journalists outside Council of Governors offices at Oracle, Westlands, on April 1.
LOOMING CRISIS: Governors James Ongwae (Kisii), Anyang' Nyong'o (Kisumu) and Abdi Mohamud (Wajir) address journalists outside Council of Governors offices at Oracle, Westlands, on April 1.
Image: FILE

County governments are likely to cross the financial year with huge pending bills and incomplete projects.

This is after revelations that they are yet to receive Sh70 billion from the National Treasury.

With only 14 days to the end of the financial year, the Star has established that Treasury has disbursed Sh290.07 billion in equitable share, since the beginning of the current financial year.

This translates to about 80.8 per cent of the annual allocation of Sh370 billion for the 47 counties.

Data obtained by the Star from Treasury shows that 15 counties are yet to fully receive their funds for March.

They include Bomet, Elgeyo Marakwet, Isiolo, Kwale, Lamu, Migori, Nakuru, Nyeri, Samburu, Siaya, Tana River, Turkana, Uasin Gishu, Vihiga and Wajir.

Only 17 out of the 47 counties have received disbursements for April with Mombasa being the only county that has got up to May.

“We have done an average of 79.4 per cent across the counties but one county – Mombasa is ahead. It is at 92 per cent,” Controller of Budget Margaret Nyakang’o said.

The new financial year, 2022-23, begins on July 1.

Some of the counties with huge pending balances include Turkana (Sh3.21 billion), Kwale (Sh2.10 billion), Uasin Gishu (Sh2.05 billion) and Wajir (Sh2.41 billion).

The delays are likely to affect smooth operations in the counties especially at the time the devolved units are nearing transition.

In what is worsening the situation, most counties are yet to receive the bulk of Sh39.9 billion due to them in additional allocation, previously known as grants.

“There are the additional allocations, which were to come from MDAs (Ministries, Departments and Agencies – national government), but the counties are yet to receive the money,” Nyakang’o said.

The additional allocation include supplement for construction of county headquarters, leasing of medical equipment and funds from development partners.

Last week, Council of Governors demanded release of the cash to complete the ongoing projects before the transition time.

“In the current financial year, county governments were allocated Sh39.9 billion as additional funds.

"We note with concern that, no county government has received any additional allocations, with one month left to the end of the financial year under which these funds were budgeted for,”  CoG said in a statement.

Besides affecting delivery of crucial services and stalling projects, the governors warned that the  delayed disbursements may hurt transition to new county governments following the August 9 General Election.

At least 24 governors who have served their two-terms will be leaving office after the election, to pave for new office holders as stipulated in the constitution.

Some of those seeking re-election are also facing stiff competition and may pave way for new administrations if they lose.

“The perennial delays have negatively affected service delivery in counties and has further led to continuous pending bills.

"This is already threatening the desired smooth transition after the August election,” the governor’s body said.

The delays have also affected payments of salaries to county staff, often triggering protests and demonstrations.

Last month, Homa Bay workers downed their tools, demanding clearance of two months arrears.

In September 2020, the governors shutdown counties due to prolonged delays by the Nation Treasury to release funds, after Parliament delayed the passage of the new sharing formula.

“Non-essential services are suspended and county employees are advised to proceed on a two-week leave,” the then COG chairman Wycliffe Oparanya said.

(Edited by Bilha Makokha)

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