County governments will soon be able to borrow up to five per cent of their audited revenue
from Central Bank.
CBK governor Patrick Njoroge said on Tuesday that CBK
will provide them with overdrafts of a maximum of five per cent of gross recurrent revenues.
Njoroge said the
government will come up with guidelines by the end of Octoberm to make it legal for counties to borrow funds. This includes the repayment of funds borrowed within a year.
Njoroge spoke during an Intergovernmental Budget and Economic Council meeting chaired by DP William Ruto at his Karen office in Nairobi.
Ruto said the council has approved mechanisms for county governments to access overdrafts at CBK with guarantees from Treasury.
Council of Governors chairman Peter Munya (Meru) and CSs
Henry Rotich (Treasury) and Cleophas Mailu (Health) also attended the meeting.
Others present were Governors Isaac Rutto (Bomet), Wycliffe Oparanya (Kakamega), William Kabogo (Kiambu),
Sospeter Ojaamong' (Busia), Kivutha Kibwana (Makueni), Moses Lenolkulal (Samburu) and Alex Tolgos (Elgeyo Marakwet).
