CASH FLOW

EDITORIAL: Counties must think beyond Treasury cash

In Summary

• The Treasury has not remitted Sh52 billion desperately needed to get salaries and programmes running.

• The cash crisis has gotten to a point CoG boss Anne Waiguru has had to convene a meeting to announce that the situation is getting out of control.

Council of Governors chairperson Anne Waiguru on September 21.
Council of Governors chairperson Anne Waiguru on September 21.
Image: CoG CHAIR/TWITTER

Counties are facing a major cash crunch that could bring well laid down plans and activities to a grinding halt.

The Treasury has not remitted Sh52 billion desperately needed to get salaries and programmes running.

The cash crisis has gotten to a point Council of Governors boss Anne Waiguru has had to convene a meeting to announce that the situation is getting out of control.

August and September receipts still being held at the centre.

The delays and huge arrears have the potential to delay the pay of thousands of county workers pay.

The cash delays have become something normal. It is almost expected every financial year.

The delay, though in most cases unjustified and wrong should by now taught governors and their teams to plan differently.

There is no bigger lesson for counties than to understand that the Treasury could faces hurdles with cash flow the type currently being experienced.

And to cure their lean purses, the financial managers must get creative and open new avenues of generating revenue to bridge the gaps opened by the delays.

On the flip side, the Controller of Budget has only this week released a report that exposes the type of profligate spending that wins counties no sympathy.

 

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