Treasury releases details of cash disbursements

October 18, 2015 9:29 am
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In a statement in the local dailies, Treasury Principal Secretary Kamau Thugge also indicated that all National Government Ministries, departments and agencies have received a total of Sh148.2 billion for recurrent expenditure and Sh26.1 billion for development expenditure/FILE
In a statement in the local dailies, Treasury Principal Secretary Kamau Thugge also indicated that all National Government Ministries, departments and agencies have received a total of Sh148.2 billion for recurrent expenditure and Sh26.1 billion for development expenditure/FILE
NAIROBI, Kenya, Oct 18 – The National Treasury says Sh33.9 billion of Exchequer disbursement for the period between July 1 to October 16 has been sent to County Governments.

In a statement in the local dailies, Treasury Principal Secretary Kamau Thugge also indicated that all National Government Ministries, departments and agencies have received a total of Sh148.2 billion for recurrent expenditure and Sh26.1 billion for development expenditure.

The Treasury had been on the spot in recent months over the delayed disbursement of funds to County Governments in what county chiefs say is derailing their development plans.

“The National Treasury would like to assure Kenyans that despite the challenges facing the global economy including Kenya, the Government of Kenya continues to meet its financial obligation. More specifically, as at 16th October 2015, since the commencement of the current financial year, the National Treasury has disbursed funds to the National Government and County Governments,” Thugge said.

Governors had appealed to the National Government to quickly submit to the counties the minimum 15 percent revenue allocation meant for their operations.

They stated that the delay by the Treasury to release the funds was hurting the counties as they needed to start implementing the development projects that they promised Kenyans.

Parliament’s Budget Committee had last week summoned Treasury Cabinet Secretary Henry Rotich for an emergency meeting to discuss a cash crisis in the government.

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.

In the statement, Thugge pointed out that Sh57billion has been released to pay salaries in all National Government Ministries departments and agencies that are in its budget.

He also indicated that development expenditure for Parliament was Sh641 million while its recurrent expenditure was at Sh4.8 billion. The Judiciary was allocated Sh91 million for development expenditure and its recurrent expenditure was pegged at Sh647.7 million.

Sh6 billion was set aside for Free Day Secondary Education and Sh3 billion was for Free Primary education.

According to Treasury, other institutions to benefit include the Higher Education Loans Board which received Sh2.4 billion, public universities, Sh2.8billion and Security which received a total of Sh34.5 billion.

Rotich had attributed the delays in payments for essential services to low revenue collection and high borrowing costs.
READ: No serious cash crunch, just low revenues – Rotich

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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