- Cash crisis has once again hit county governments in the wake of delays by the National Treasury to release funds.
- Disbursement records obtained by the Star shows that the devolved units have not received funds for up-to three months.
Image: PCS
Cash crisis has once again hit County governments in the wake of delays by the National Treasury to release funds.
Disbursement records obtained by the Star shows that the devolved units have not received funds for up-to three months.
The delays threaten to disrupt crucial operations and delivery of services by the counties.
The records, obtained from the office of the Controller of Budget, reveals that some 24 counties are yet to receive disbursements for November.
None of the 47 devolved units has received a penny for December and January.
Treasury last released on December 29, 2023. Some Sh4.91 billion were released to seven counties to carter for the month of November.
Before that, the National Treasury had released some Sh17.13 billion to some 16 counties.
Out of the amount, some Sh6.77 billion was used to clear balances for October and Sh10.36 billion went to some 16 counties for the month of November.
Counties that have received November disbursements are Elgeyo Marakwet, Homa Bay, Isiolo, Kericho, Laikipia, Mombasa, Nairobi, Bomet, Kajiado, Kakamega, Kirinyaga, Kisumu, Mandera, Marsabit and Meru.
Others are Nandi, Narok Nyamira and Nyandarua.
Counties yet to received November funds are Siaya, Bomet, Busia, Bungoma, Embu, Garissa, Kiambu, Kilifi, Kisii, West Pokot, Wajir, Vihiga, Turkana, Trans Nzoia, Tana River and Nyeri.
Others are Taita Taveta, Kwale, Samburu, Machakos, Makueni, Lamu and Kitui.
The revelations come even as President William Ruto has been vowing to release county funds on time.
“I believe that our country’s fortunes, to a decisive extent, are dependent on how we manage the devolution of national power and resources,” the President said in December last year.
The late cash disbursement was endemic in the previous government triggering wrangles between the National and County governments.
Often, the governors threaten to shutdown County governments due to delayed release that affected crucial operations including payment of salaries.
The law requires the Treasury to disburse funds by the 15th of every month for the following month.
However, this has not been the case with the Treasury delaying the disbursements for up to four months.
The National Treasury has often cited cash flow challenges caused by underperforming revenues and huge public debt obligations for the delayed releases.
“The delay in disbursement of funds to counties has been occasioned by shortfall in revenue collection as well as high public debt obligations,” Treasury CS Njunguna Ndungu told MPs last year.
But the counties have also been on the spot for underperforming own-source revenues that have triggered their overreliance on the national cake.
The revelation comes at a time MPs are also up in arms about the delay by the Treasury to release National Government – Constituency Development Fund (NG-CDF) funds as school reopen.
Early this week, a group of MPs from both sides of the political divide demanded the release of Sh63 billion for CDF.
In a rare show of unity, the lawmakers threatened to initiate impeachment proceedings against CS Njuguna if the cash does not hit constituencies’ accounts in seven days.
The MPs said they would push for a special meeting to initiate the impeachment process if they do not receive the money by next week on Tuesday.
“We demand that the entire allocation of the CDF must be released within seven days as is due, if that is not done, we will call for a special sitting of the House, and draft an appropriate motion against the CS Treasury and the NG-CDF board or any other entity as we may determine at the time," Rarieda MP Otiende Amollo said.