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Hillary Mageka @hillarymageka

Last-minute talks between National Treasury and Council of Governors (CoG) yesterday prevented a looming paralysis at county governments due to insufficient funds.

The CoG had threatened to go on total shutdown if the Treasury does not release funds by Thursday last week.

Yesterday, CoG chair Martin Wambora said the council had shelved the plan to shutdown counties after Treasury Cabinet Secretary Ukur Yatani promised to release Sh54 billion to counties by June 30.

“We have been in discussion with Treasury and they have promised to send the funds to counties by today,” Wambora told People Daily.

Wambora warned that delayed funds disbursement is crippling operations and delivery of critical services in the devolved units. 

“We have also asked Treasury to allow us incur expenditure past June 30 for about seven days so that we can pay our contractors and suppliers and clear pending bills,” he added.

Equitable share

A report on the status of release of funds – equitable share and conditional grants – by the Office of Controller of Budget on Friday indicates that Treasury is yet to release Sh101.78 billion to counties.

Contacted,  Controller of Budget, Margaret Nyakang’o, yesterday said: “Treasury is not likely to give the amounts in this financial year. They may try early in July to catch up,”

Appearing before the Senate Committee on Budget and Finance recently, CS Yatani contradicted himself when he said that the  ministry might not clear the outstanding balance for counties before the end of the financial year.

“My undertaking is that we will clear pending bills of March and part of May. For May, I cannot authoritatively say how it will be.

It will be subject to inflow and trickling of revenues,” Yatani told the committee chaired by Kirinyaga Senator Charles Kibiru.

“It is most likely that the disbursement for June will go into the next financial year,” he added.

Highest allocation

The CS cited the underperforming revenue due to Covid-19 pandemic, which he said has hit the entire government.

According to the report, the Treasury has disbursed Sh271.80 billion out of the Sh373.59 billion allocated to counties in the current financial year ending June 30.

County with the highest disbursement is at 80 per cent. The lowest is at 54 per cent, with average disbursement standing as at 72.8 per cent.

Report shows  Tharaka Nithi, Siaya and Bomet have received the highest allocation in terms of percentage.

Tharaka Nithi has got 81 per cent of the Sh4.54 billion it was allocated the year, Bomet and Siaya are both at 80 per cent. They have received Sh5.04 billion and Sh5.21 billion.

Other counties that have received the highest amounts in terms of percentage are Busia, Kajiado, Mandera, Wajir and Nyandarua.

They have all received up to 79 per cent of their annul allocations with only a week to the end of the financial year.

Counties with the lowest percentage are Nairobi, which has only received Sh9.07 billion out of Sh16.80 billion it was allocated. This represents 54 per cent.

Others are Mombasa (61), Uasin Gishu (68), Kwale (68), Kilifi (70), Isiolo (70), Kiambu (70) and Tana River (72).