Deputy President Rigathi Gachagua has assured governors that the government is committed to disbursing funds to counties despite the prevailing financial challenges.

Allocations for the last financial year, Gachagua said, had been fully disbursed and the National Treasury was working to clear pending monthly allocations.

“During the last financial year (2023/24), the National Treasury transferred Sh354.5 billion to counties by June 30, 2024, the equivalent of 92 percent of the total equitable share due to counties. The outstanding amount of Sh30.83 billion for June was released in July,” the DP said.

Gachagua spoke yesterday when he chaired a meeting of the Intergovernmental Budget and Economic Council at his official residence in Karen, Nairobi.

In this regard, Treasury Cabinet Secretary John Mbadi said plans were underway to release money to counties for July and August by September.

During the Karen meeting, it was also resolved that adjustments be made to budgets for this financial year following the withdrawal of the Finance Bill 2024.

“It was noted that with the exceptional circumstances of FY 2024/25, and the withdrawal of the Finance Bill 2024/25, there was a need for counties to appreciate the need for a variation of the Division of Revenue Bill and restructure their respective Finance Bills accordingly,” the budget council said in a statement.

“The Council of Governors requested that they be allowed to engage the Senate on the matter.”

Meanwhile, the DP appealed to governors to put more effort into clearing pending bills so as to rejuvenate the economy. He urged them to work with the Controller of Budget to implement recommended measures so that they can effectively address matters through the budgetary processes.

“The National Treasury indicates that as of June 30, 2024, outstanding national government pending bills [stood] at Sh516 billion, a decrease from Sh622.82 billion as of June 30, 2023,” he said.

“Initial comparative reports for 26 counties show a significant reduction from Sh43.6 billion to Sh33.9 billion as of June 2024.”

On the equal sharing of revenue from national parks, Gachagua said progress had been made to address the issue quickly as directed by President William Ruto.