The delays have a serious knock-on effect that slows down the entire economy.
The money multiplier, quite volatile with the advent of mobile money, now hovers around 7.5 times.
This past week the National Treasury disbursed equitable share, Level 5 hospital grants, user fees and grants to youth polytechnics totaling Sh43.48 billion. This cleared outstanding equitable share balances for up to April, but while a big step forward, it was clearly not enough to clear all pending bills.
As thing stand, it looks like we will close the fiscal year on June 30, 2021 with counties equitable share for May and June outstanding. What are the consequences? Non-adherence to the law, delayed salaries, strain on the health sector, piling pending bills, and, worst of all, muted economic activity.
