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Counties will share Sh31.4 billion in February allocation after the National Treasury released the money, forestalling a planned shutdown of operations.

In the schedule seen by People Daily, the 10 counties that will receive the highest allocations include Nairobi (Sh1.6 billion), Nakuru (Sh1.1 billion), Turkana (Sh1.07 billion), Kakamega (Sh1.05 billion), Mandera (Sh951 million), Kiambu (Sh995.9 million), Kilifi (Sh989 million), Bungoma (Sh906 million), Kitui (Sh883 million) and Meru (Sh806 million).

The counties that will receive the least include Kirinyaga (Sh441 million), Nyamira (Sh436 million), Laikipia (Sh436 million), Embu (Sh435 million), Vihiga (Sh430 million), Taita Taveta (Sh411 million), Isiolo (Sh400 million), Elgeyo Marakwet (Sh391 million), Tharaka Nithi (Sh358 million) and Lamu (Sh263 million).

In the schedule based on the County Allocation Revenue Allocation (CARA) passed by Parliament for the 2021-2022 financial year which ends on June 30, Wajir will receive Sh805 million, Machakos (Sh778 million), Kisii (Sh756 million) Narok (Sh751 million), Kwale (Sh702 million), Makueni (Sh691 million), Uasin Gishu (Sh685 million), Kisumu (Sh682 million) and Migori (Sh680 million).

On Monday, the Council of Governors (CoG) withdrew a threat to shut down counties after the National Treasury released some of the funds due to the devolved units.

CoG had on April 24 issued a 14-day ultimatum to shut down counties to protest the Treasury’s delays in the disbursement of funds.

“Since the Council’s notice on this matter, issued on April 24, 2023, the National Treasury has so far disbursed February 2023 allocations amounting to Sh31.45 billion to the 47 counties. Currently, the outstanding monies owed are Sh29.6 billion for March 2023 allocation,” said CoG chairperson Anne Waiguru.

Financial year

Out of the Sh31 billion released by the National Treasury, Kisumu will receive Sh682 million, Kajiado (Sh676 million), Garissa (Sh673 million), Homa Bay (Sh663 million), Mombasa (Sh643 million), Marsabit (Sh618 million), Murang’a (Sh610 million) and Trans Nzoia (Sh610 million).

People Daily has also established that Busia will get (Sh609 million), Siaya (Sh592 million), Nandi (Sh594 million), Bomet (Sh568 million), Tana River (Sh554 million), Kericho (Sh546 million), Baringo (Sh541 million), Nyeri (Sh529 million), Nyandarua (Sh481 million) and Samburu (Sh456 million).

While appearing before the Senate County Public Investments and Special Funds Committee last week, National Treasury Cabinet Secretary Njuguna Ndung’u promised to release the March and April allocations next month and complete the May and June allocations before the end of the financial year.

With only two months remaining before the close of 2022/2023 budget, counties are yet to receive Sh29.6 billion and Sh33.3 billion for March and April respectively.

The CS was hard pressed to explain the staggering disparity between counties and the national government disbursements.

Citing the harsh economic times,  Ndung’u stated that the funds will be released to the counties in phases starting with February arrears that has now been disbursed with other payments for the remaining months to be released before the end of the financial year.

“We are not deliberately violating the law. The delays are because of the severity of the problem. We are supposed to remit by 15th of every month but times are hard. The high public debt as well as shortfall in revenue collection has aggravated the situation. We have paid the arrears for last year,” he said.

At the same time, Ndung’u stated that the exchequer owes the national government Sh211.6 billion.

Fishy deals

Kenya Revenue Authority (KRA) admitted to have surpassed its target for revenue collection in the 2021/2022 financial year with over Sh114 billion.

“It is true that we surpassed the targets by 8.2 per cent. We collected Sh114 billion more as at June 30, 2022 than what we collected the previous year,” stated KRA Commissioner for Legal Affairs Paul Mutuku.

Data from the National Treasury shows that county governments have received Sh246 billion in equitable share since June last year with over Sh124 billion still outstanding two months to the end of the financial year.

Senate Public Investment and Special Funds Committee chair Godfrey Osotsi (Vihiga) said delay of disbursement was crippling development projects in the devolved units.

“The issue of delayed funds is a serious one. We are now only two months to this year’s budget and devolved units are yet to receive more than half of what they are supposed to get. Apart from crippling development projects in the counties, late disbursement of funds is what mainly leads to corruption as it provides room for fishy deals before closing of the budget,” said Osotsi.