Relief for counties as Treasury set to release funds after prolonged delay

County governments are set to receive funds following delays in revenue disbursements by the national government.

This comes after a significant meeting between the Council of Governors (CoG) and Treasury officials on Thursday.

Treasury Cabinet Secretary John Mbadi, CoG Vice Chair Ahmed Abdullahi Jiir, and Nairobi Governor Johnson Sakaja convened to address the impasse that had halted funding transfers to the counties.

While expressing relief after the meeting, Governor Abdullahi said, “This has been a difficult period for us, but we are hopeful following the discussions that counties will soon see funds flowing again.”

Governor Sakaja echoed his sentiment, noting, “We had a fruitful meeting and are happy that counties will be receiving funds soon. It has been a tough three months, but now the matter is resolved.”

The financial deadlock had left all 47 counties without essential disbursements leading to economic strain impacting vital services and development projects. Some governors had even resorted to borrowing funds or scaling back non-essential services to manage the situation.

Health services suffered significantly, with public hospitals facing shortages of supplies and delays in staff payments. Additionally, school feeding programs, critical for students in marginalised areas, experienced disruptions.

Treasury CS Mbadi assured that the discussions had been productive, and counties should anticipate the resumption of fund releases shortly.

“The meeting was fruitful, and counties should expect the resumption of exchequer release,” Mbadi said.

Previously, during a CoG meeting with President William Ruto at the State House to discuss Universal Health Coverage (UHC), governors had raised concerns about the funding delays.

President Ruto subsequently appointed a team to collaborate with the Treasury to seek solutions.

Governors Sakaja, Abdullahi, and Finance Chair Jiir were then chosen to engage with Treasury CS Mbadi to resolve the issue.

Treasury was scheduled to release at least Sh100 billion in equitable shares to the 47 county governments to cater for the first quarter of 2024/25