Rotich date with MPs on cash queries postponed

October 21, 2015 9:10 am

, HENRY-ROTICH-ON-KQNAIROBI, Kenya, Oct 21 – National Treasury Cabinet Secretary Henry Rotich will now appear before the National Assembly Budget and Appropriations Committee on Thursday next week after the sitting on Wednesday was postponed due to what was described as logistical challenges.

The CS who will appear before the committee before Parliament goes on recess was to expound on measures taken to contain the cash crunch being experienced in the country.

Rotich was to respond to MPs queries following his presentation last week where he said there was no severe crunch but blamed the situation on low revenue collection and high borrowing costs.

He had during an earlier sitting cited global market volatility in the wake the appreciation of the US dollar and slowdown of growth in China, as being other reasons.

He said the Treasury is working to reduce domestic borrowing, in order to fore-stall choking economic growth.

The Mutava Musyimi-led committee had been alarmed by serial delays by Treasury to disburse cash to various government departments, holding up payments for essential services, including salaries.

Apart from the National Assembly, the cash crisis also affected various commissions including the Independent Electoral and Boundaries Commission (IEBC) and the Ministry of Education and the Judiciary’s funds.

Rotich had attributed the delays in payments for essential services to low revenue collection and high borrowing costs.

The Micah Cheserem-led Commission for Revenue Allocation (CRA) recently released the revised budgetary allocations in which the 47 counties will share Sh190 billion plus a Sh20 billion conditional grant as was passed by the National Assembly.

The budget, which ranks Nairobi as the highest recipient at Sh9.5 billion and Lamu as the lowest at Sh1.5 billion, estimates the amount of money the counties should spend on an individual resident and the poverty levels.


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