NAIROBI, Kenya Jun 13 – Governors have warned that counties will be forced to shut down by June 24 should the National Treasury fail to disburse Sh102.6 billion owed to them.
The Council of Governors decried poor financing of the counties by the National Treasury revealing that it has failed to disburse the funds to the devolved units two weeks before the end of financial year.
“Unfortunately if the National Treasury fails to release the required funds counties will not be able to offer basic services thereby forcing suspension or a total shut down by 24 June,” COG Chairman Martin Wambora said in a statement.
He urged Treasury to release the funds before June 18 to offer counties the remaining 8 days to meet the requirements by the Controller of Budget in accessing and spending the budget.
“If the National Treasury releases the resources outstanding, counties will be able to clear most of the eligible pending bills, pay salaries on time and remit statutory deductions, ” Wambora said.
Counties had been given up to June 30 to clear all the pending bills amounting to Sh11.5 billion.
Governors further faulted the Ukur Yattani- led ministry for consistently financing the National Government at the expense of the devolved units whose services benefit majority of Kenyans.
The worst affected county, COG noted, is Nairobi county which is yet to receive Sh 3.5 billion for the financial year 2019/20 and another Sh 2.6 billion and sh 1.4 billion for the months of January and February respectively.
Another Sh 14.4 billion is owed to 25 county governments for the month of March while cumulative Sh80.6 billion is owed to all the 47 county governments for the months of April, May and June.
Wambora said the continued delay in delivery of services erodes gains made in devolved governance and affects the economic growth of counties.
“It is imperative for Kenyans to understand that financing counties by the National Treasury is not a favor but a constitutional obligation. The taxpayer at the county is also entitled to timely delivery of services, ” COG added.
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