Deputy President Rigathi Gachagua has said governors will from now henceforth fund the counties with collected revenues.
Speaking after chairing the 20th Intergovernmental Budget Economic Council (IBEC) meeting at his Karen residence, the DP said no money will be borrowed from the expenditures to fund counties.
"We shall not borrow from the current expenditure, but from the collected revenues. If we don't collect revenue there will be no money available in the county governments," he said.
Gachagua added that he has asked the governors to collect enough revenue, as they are in the same boat as the national government.
"Even as others criticise the measures taken in the Finance Bill 2023 that has been tabled in Parliament, the Governors should be cautious of joining the choir," he said.
The DP also announced that Treasury will be disbursing April funds to counties this week.
He further disclosed that the arrears for the month of May will be released by June 19.
"We have explained to the governors the strains that the Treasury is undergoing in terms of the exchequer and they have understood," said Gachagua.
He stated that so far counties have received a total of Sh305 billion with an outstanding arrears of Sh94 billion for the three months until June.
According to Gachagua, Treasury has already given a commitment to raise funds for June before the end of the financial year.
