Kindiki urges counties, Controller of Budget to work harmoniously in resource allocation
By Maureen Kinyanjui |
Kindiki proposed a solution to bridge the gap between the differing perspectives of the Council of Governors and the Controller of Budget.
Deputy President Kithure Kindiki has called for a swift resolution of the ongoing issues surrounding the disbursement of funds to county governments, urging a collaborative approach between national institutions to ensure timely resource allocation.
Speaking on Friday during the 25th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC), Kindiki pointed out that both the Council of Governors and the Controller of Budget must work in harmony to deliver on their mandates without frustrating each other.
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"There has been a challenge in the timely disbursement of county resources. I have been informed by the CS of National Treasury that progress has been made, and the delay for November funds will be addressed next week," he said.
However, the Deputy President also acknowledged that the delays are not only due to financial disbursements but are also tied to accountability processes.
"I am aware that there are other issues involving access to development funds, which have been delayed due to accountability procedures involving the Office of the Controller of Budget," he said.
"We need to address these concerns head-on to ensure that counties can access and utilise the funds they are entitled to," Kindiki added.
The DP said that while accountability is critical, it should not become a barrier to efficient spending.
"We cannot have a situation where county governments receive funds and are unable to spend them. At the same time, we must insist that accountability is mandatory for all levels of government, including county governments," he stated.
Balance needs
To resolve these issues, Kindiki proposed a solution to bridge the gap between the differing perspectives of the Council of Governors and the Controller of Budget.
"We must find a way to balance the needs of both institutions to ensure that we assist them in delivering on their mandates," he said.
"No institution has the right to frustrate the other. Both are pursuing legitimate national interests," the DP said.
Several governors across Kenya have turned to commercial banks for costly loans to cover essential expenditures, including salaries, as the National Treasury delays monthly disbursements.
A recent report by Controller of Budget Margaret Nyakang'o reveals that at least eight counties have borrowed over Sh2 billion to sustain operations during the first quarter of the 2024-2025 Financial Year.
The affected counties include Kisumu, Kakamega, Kisii, Migori, Laikipia, Homa Bay, Bungoma, and Nyandarua.
These counties, facing financial constraints due to the delayed funds, have entered into loan agreements with banks to cover recurrent expenditures.
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