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State pledges timely payment of all funds owed to counties in race against crisis

Deputy President Rigathi Gachagua chairs the 22nd Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC), at his official residence in Karen, Nairobi, on January 29, 2024. (Photo: PCS)

By Apollo Ochieng | 29 Jan 2024

The government has announced plans to release all funds owed to counties in time to avert the possible disruption of services in the devolved units.

This is according to Deputy President Rigathi Gachagua, who on Monday told governors that all funds owed to counties by the national government will be released.

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Speaking during the 22nd Ordinary session of the Intergovernmental Budget Economic Council (IBEC) at his office in Karen, Nairobi, Gachagua noted that past delays were occasioned by various factors, including dwindling revenues linked to increasing debt obligations.

“The government remains committed to achieving the timely disbursement of funds to counties. As we speak, payments to most counties are nearly up to date - until December 2023,” Gachagua said.

The DP spoke in the wake of a growing concern among governors over delays by the national government to release funds to counties on time.

The latest figures released by the Council of Governors show that the devolved units have yet to receive funds for up to three months, a move that the governors said threatens to disrupt crucial operations and the delivery of services.

Also, some 24 counties are yet to receive their funds for November 2023, with none of the 47 devolved units having received a penny for December 2023 or January 2024, according to data from the Office of the Controller of Budget.

Counties that have received November disbursements are Elgeyo Marakwet, Homa Bay, Isiolo, Kericho, Laikipia, Mombasa, Nairobi, Bomet, Kajiado, Kakamega, Kirinyaga, Kisumu, Mandera, Marsabit, and Meru.

Those that are yet to receive the money include Siaya, Bomet, Busia, Bungoma, Embu, Garissa, Kiambu, Kilifi, Kisii, West Pokot, Wajir, Vihiga, Turkana, Trans Nzoia, Tana River, Nyeri, Taita Taveta, Kwale, Samburu, Machakos, Makueni, Lamu, and Kitui.

At the meeting in Nairobi, governors were also asked to speed up the process of clearing pending bills owed to suppliers and contractors in the various regional governments.

Gachagua asked the regional bosses to prioritise clearing debts that have been accumulating over the years, noting delays have slowed economic progress in most counties.

According to data from the National Treasury, the county government owes suppliers and contractors a total of Sh159.9 billion in the form of pending bills as of June 2023.

“We must tackle the threats of the rising wage bill. Prompt payments for goods and services will release funds to our people and spur economic growth for a better and more vibrant economy. Let money circulate,” Gachagua said.

“Corruption is a threat to both levels of government. Let us work collectively to put in place control measures to monetise the use of public funds for procurement and expenditure to be within the law,” the DP added.

The meeting brought together governors from across the 47 counties and heads of state agencies and departments, including the National Treasury, Office of the Controller of Budget, the Commission on Revenue Allocation, the Office of the Auditor General, and development partners.