Counties to receive Sh50.5 billion after Senate resolves funding standoff
The allocation will cover conditional grants for key programmes, including the County Aggregation and Industrial Parks initiative and the Community Health Promoters project.
The Senate has finally approved the disbursement of Sh50.5 billion to counties following months of delays, paving the way for crucial projects that had stalled due to a prolonged funding impasse to proceed to completion.
During a special sitting on Thursday, senators backed the County Governments Additional Allocation Bill, urging county governments to ensure that the funds are utilised effectively.
The allocation will cover conditional grants for key programmes, including the County Aggregation and Industrial Parks initiative and the Community Health Promoters project.
A portion of the funds will also be used to settle salary arrears for healthcare workers, fulfilling part of the 2017–2021 Collective Bargaining Agreement that has remained unresolved.
Senate Majority Leader Aaron Cheruiyot criticised the prolonged delays in releasing the funds, stating that the bill should not be used as a tool to undermine devolution.
He expressed frustration that the funds had been withheld for over eight months, affecting the counties’ ability to implement essential development projects.
“It is embarrassing that the push and pull between the Senate and the National Assembly has stalled the implementation of the bill, with the Sh10 billion Roads Maintenance Levy Fund at the centre of contention,” said Cheruiyot.
He called for swift action to ensure counties receive the funds without further delays, noting that passing the bill this late in the financial year was regrettable.
Cheruiyot further highlighted that the funds include allocations for the construction of county headquarters, some of which have been under construction for over a decade.
He urged senators to closely monitor these projects to ensure they do not become white elephants, warning against the mismanagement of resources.
The Majority Leader also stressed the need to guide counties in producing raw materials for industrial parks rather than focusing solely on constructing modern buildings that might not be utilised effectively. He urged the Senate Finance Committee to consider whether the funds should be allocated separately for better oversight and accountability.
Senate Chief Whip Boni Khalwale also voiced concern over the delay in disbursing funds, stating that it has caused confusion even among donors.
He noted that while funds meant for county projects sit idle in bank accounts due to political and bureaucratic wrangles, interest continues to accumulate on the unused money.
“Governors, senators, and Members of the National Assembly have become the enemies of the people. This bill is meant to ensure counties function effectively. The success or failure of this country depends on how leaders act,” he said.
With the Senate’s approval, counties are now expected to receive the long-awaited funds, which will help address critical financial gaps in infrastructure and healthcare.
However, leaders have cautioned that the money must be spent prudently to avoid wastage and stalled projects.
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