Senators have joined governors in pushing the National Treasury to release funds to counties to ease financial pain and avoid disruption of services.
The call comes in the wake of a cash crunch that has hit the counties due to prolonged delays in disbursement of funds to the devolved units.
Treasury owes counties at least Sh83 billion in equitable share alone, a scenario that has threatened to halt services.
The senators said the never-ending delays are not only affecting services, but could affect transition in August.
Homa Bay Senator Moses Kajwang said many county governments have accumulated huge debts as a result of delayed funds remittances.
He said his colleagues in the Senate should ensure the delayed remittances are addressed in the remainder of the life of Parliament.
“We should not leave this House when there is any money that is owed to a county government, or when there exists a county that is still reporting billions of shillings in pending bills,” Kajwang said.
The senator spoke during the debate and passage of the County Allocation of Revenue Act (CARA) Bill, 2022.
The bill splits among the 47 devolved units, the Sh370 billion allocated to the counties as equitable share in the 2022-23 financial year starting July 1.
Kajwang said by withholding or delaying the funds, the Treasury is violating the constitution, the County Allocation of Revenue Act, Division of Revenue Act and the Disbursement Schedule.
Kisii Senator Sam Ongeri said with the huge outstanding balances, many current administrations will likely pass over huge pending bills to their successors in August.
“It is not fair to pass over pending bills to an incoming government without settling them. If it were possible, they should be settled in this financial year, which ends on June 30. That is less than two months from now.
“The only thing that this Senate can do is to push the National Treasury to ensure that pending bills are settled in one way or another,” Ongeri said.
On Monday, Council of Governor’s Finance committee chairman Ndiritu Muriithi (Laikipia) said counties are facing a serious cash crisis that could halt delivery of crucial services.
Nominated Senator Naomi Waqo said it is unfortunate that the counties have not been receiving their allocations on time, 10 years into devolution.
“I believe governors are hearing us, although I know they are busy campaigning. Devolved funds should go to the right places and be used well,” she said.
(Edited by Bilha Makokha)
