NAIROBI, Jan, 28 – Deputy President Rigathi Gachagua will on Monday chair an Intergovernmental Budget Economic Council (IBEC) summit.
The meeting which brings together the Council of Governors, State agencies and top government officials comes at a time counties are facing a cash crisis over delayed disbursement of funds.
According to the governors, Treasury is yet to release funds amounting to Sh81 billion being the arrears of November 2023 to January 19, 2024 respectively.
The Council of Governors (CoG) Chairperson Anne Waiguru said following a prolonged delay by the National Treasury to release funds, the 47 devolved governments counties have not paid salaries since November last year.
“17.4 billion Shillings is owed to 24 counties since November. 30 billion Shillings is owed to 47 counties since December 2023 and 32 billion Shillings owed to 47 counties for January 2024,” she added.
The IBEC Summit is also expected to deliberate on a proposal by counties to be allocated 450 Billion Shillings as equitable share for the 2024/25 Financial Year.
The Commission on Revenue Allocation (CRA) and the National Treasury will also submit their counter proposal based on a formula outlined in Articles 203 of the Kenya Constitution.
The law provides every financial year, the equitable share allocated to county governments shall be not less than fifteen per cent of all revenue collected by the national government.
The amount shall be calculated on the basis of the most recent audited accounts of revenue received, as approved by the National Assembly.
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