Kakamega Governor Fernandes Barasa has called for automation and digitisation on the process of disbursement of equitable revenue funds to counties to end perennial delays.
Barasa who chairs the Finance and Economic Planning committee of the Council of Governors, said the constant delays in disbursement are caused by the long approvals and disbursement processes.
“The Controller of Budget should automate the process so that instead of counties sending their executive members for almost two weeks pursuing the process, she can just use digital documents available to fastrack the release of funds,” he said.
Barasa was speaking during the 41st annual ICPAK Seminar Edition 1 in Mombasa where he further called on the national government to fully fund devolution.
“As of today, the national government owes counties Sh98 billion as equitable share and we are less than two months into a new financial year, this constant delays are also the main cause of huge pending bills in our counties,” he said.
He further added that despite the transfer of duties tribunal costing pending devolved functions at more than Sh250billion, MPs proposed an increment of only Sh15 billion.
Earlier this week, MPs proposed disbursement of Sh391 billion to be divided among the 47 counties, if the proposal sails through it means the funds will increase from Sh385 billion.
“Health is almost 90 per cent devolved but the Ministry of Health is getting more money than what is proposed for 47 counties. What is the logic of giving a ministry almost Sh40 billion and adding counties only Sh5.5billion?” he posed.
Vihiga Governor Wilberforce Ottichilo said generation of own source revenue should not be dealt with using umbrella figures across the county. This, he said, is due to the wide gap in difference of activities undertaken by counties in the rural and urban setup.
“For example in my county Vihiga a lot of economic activities include farming but counties like Nairobi and Nakuru have huge revenue streams due to the variety of activities they have,” Ottichilo said.
He further questioned why the national government has been implementing projects that are meant to be done by the devolved units. This he said include distribution of fertiliser under the Ministry of Agriculture which was done by national government, but is a devolved function.
On Wednesday, the exchequer disbursed to 17 counties monies for March 2024 allocations. The arrears include Sh20.78 billion owed to 30 counties for March 2024 allocations, another Sh34.69 billion owed to 47 counties for April 2024 allocations.
The Treasury further owes Sh32.76 billion owed to 47 counties for May 2024 allocations, the total arrears now amount to Sh88.30 billion.
