LOOMING

Cash crunch persists as 27 counties yet to receive August disbursements

Only 20 counties have received cash for August

In Summary
  • At least 27 counties could face a crunch after revelations they have not received cash disbursement from the National Treasury since August.
  • A report on the status of the cash release shows that only 20 counties have received cash from the Treasury to run their day-to-day operations
Council of Governors chairperson Anne Waiguru speaks during Senators induction in Naivasha on Wednesday, September 21.
Council of Governors chairperson Anne Waiguru speaks during Senators induction in Naivasha on Wednesday, September 21.
Image: CoG CHAIR/TWITTER

At least 27 counties could face a crunch after revelations they have not received cash disbursement from the National Treasury since August.

A report on the status of the cash release shows that only 20 counties have received cash from the Treasury to run their day-to-day operations.

The report obtained by the Star from the office of the Controller of Budget shows that the last disbursement of Sh9.28 billion was done on September 27.

The cash was released to some 20 devolved units to cater for the month of August.

This implies that the remaining 27 counties could be on the brink of a serious cash crunch.

This comes at the time the new governors elected on August 9, 2022, General Election, are still settling down.

The cash crisis could put President William Ruto’s administration at loggerheads with the county chiefs barely a month after it was installed.

“Many of the counties have been requisitioning for August salaries,” CoB Margaret Nyakang’o said.

The late cash disbursement was endemic in the previous government triggering wrangles between the National and county governments.

The Star established that late disbursement will be at the center of an Intergovernmental Budget and Economic Council (IBEC) scheduled for next week.

The powerful meeting will be chaired by Deputy President and attended by key devolution players including Council of Governors representative led by Chairperson Anne Waiguru (Kirinyaga).

Nyakang’o, auditor general Nancy Gathungu, Treasury CS Ukur Yatani and his Devolution counterpart Eugene Wamalwa are expected to attend.

Besides the cash disbursements, the meeting will also give direction on the clearance of pending bills by the devolved units.

Most of the new governors have formed committees to scrutinize the bills to establish their eligibility.

According to the disbursement status report, the counties yet to receive the August, September and October disbursements are Baringo, Bungoma, Busia, Homa Bay, Kajiado, Kakamega, Kiambu, Kilifi, Kisumu, Kitui and Kwale.

Others are Machakos, Makueni, Mandera, Marsabit, Meru, Meru, Migori, Murang’a, Nairobi, Nakuru, Narok, Siaya, Turkana, Uasin Gishu, Wajir and West Pokot.

In the disbursement for the month of August, the counties that received the cash were Baringo which got Sh535.28 million, Elgeyo Marakwet which got Sh368.52 million and Embu which received Sh410.01 million.

Isiolo got 376.83 million, Kericho got Sh514.44 million, Kirinyaga got Sh415.69 million and Kisii received Sh711.54 million.

Others are Laikipia (Sh410.90 million), Lamu (Sh248.45 million), Mombasa (Sh605.38 million), Nandi (Sh559.26 million), Nyamira (Sh410.82 million), Nyandarua (Sh453.63 million) and Nyeri (Sh498.29 million).

Also in the list are Samburu (Sh429.70 million), Taita Taveta (Sh387.37 million), Tharaka Nithi (Sh337.13 million), Vihiga (Sh405.38 million) and Trans Nzoia (Sh574.89 million).

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