In Summary
  • According to a report on the status of exchequer disbursement as at May 20, 2020, the Treasury has on average disbursed 74 per cent of the annual allocation.
  • All the counties except Mombasa have received funds up to the month of March.
Governors James Ongwae (Kisii), Anyang' Nyong'o (Kisumu) and Abdi Mohamud (Wajir) address journalists outside Council of Governors offices at Oracle, Westlands, on Friday, April 1.
LOOMING CRISIS: Governors James Ongwae (Kisii), Anyang' Nyong'o (Kisumu) and Abdi Mohamud (Wajir) address journalists outside Council of Governors offices at Oracle, Westlands, on Friday, April 1.
Image: FILE

The Council of Governors has warned of a looming crisis after revelations that the counties face acute cash crisis.

CoG's Finance committee chairman Ndiritu Murithii (Laikipia) said operations in the devolved units are almost grinding to a halt due lack of cash.

"It is making life very difficult and threatening service delivery," Murithii told the Star on Monday.

He said CoG will soon make a decision on the next course of action, including and limited to court action, to push the Treasury to release the cash.

The Star has established that the counties are yet to receive Sh93.7 billion in equitable share from the National Treasury, with barely 40 days to the end of the current financial year.

The disbursement stands at 74.7 per cent of the Sh370 billion allocated to the 47 devolved units in the current financial year.

“The counties are at 74.7, except for Mombasa, which is at 83.5 per cent of the equitable share. The additional allocations are not included," Controller or Budget Margaret Nyakang'o said.

According to a report on the status of exchequer disbursement as at May 20,2020, all the counties except Mombasa have received funds up to the month of March.

Baringo has received Sh4.75 billion leaving a balance of Sh1.62 billion, while Bomet is yet to get Sh1.70 billion from the Treasury.

Bungoma is awaiting for Sh2.71 billion, Nairobi has not received Sh4.9 billion, West Pokot has not gotten Sh1.60 billion and Meru is yet to receive Sh2.42 billion.

Mombasa, the only county that has received funds up to the end of April, is yet to receive Sh1.24 billion.

“The reason why counties have not raised their voices so much is that there are conditional grants they are receiving after the additional allocation bill was passed and effected.

“The counties have been focusing on the additional allocation and forgetting the main equitable share,” Nyakang’o said.

Other counties with huge outstanding balances from the Treasury are Kakamega (Sh3.25 billion), Turkana (Sh3.21 billion), Wajir (Sh2.41 billion), Kilifi (Sh2.96 billion), Kisumu (Sh2.04 billion) and Kisii (Sh2.26 billion).

“Counties are still crying. They have received funds for the month of March but April and May are outstanding,” Nyakang’o said.

Debt repayment and low revenue collections by the taxman, worsened by the Covid-19 pandemic, have been blamed for the cash crisis in government.

Last month, the CoG through its vice chairman James Ongwae (Kisii) said the counties had not received Sh148.39 billion.

“We are concerned by the violation of the law and the perennial delays in disbursement of the county equitable share by the National Treasury,” Ongwae said.

He said while Kenyans continue to demand services from counties, the national government operations remain uninterrupted as county services are paralysed and nearly coming to a halt.

Ongwae further said, despite the counties having been allocated Sh370 billion, only Sh221.6 billion had been received by last month.

(Edited by Bilha Makokha)

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