Cash disbursed to the devolved units for the first four months of the current financial year trailed last year’s by Sh6.78 billion, the latest disclosures by the Treasury show.
The 47 county governments received nearly Sh78.59 billion in the July-October 2023 period, exchequer data published by Treasury Secretary Njuguna Ndung’u showed Friday, representing a 7.94 percent drop from Sh85.37 billion in the same period last year.
Analysis of the exchequer data shows the amount released by the National Treasury in the review period was the lowest since the financial year 2020/21 when the country was battling a Covid-induced cash crunch.
This came as President William Ruto pledged to end perennial delays in the release of county funds, a situation which has in the past temporarily paralysed some operations in the devolved units because of industrial action taken by workers.
The disbursements represent 20.39 percent of the Sh385.42 billion allocated to the counties for the full financial year under the equitable share.
“As you know, ladies and gentlemen, whenever there is money, I do my best to release that money. You are witnesses, even if you don't want to agree," President William Ruto said on September 5.
The cash released in the four months lags the target to the tune of Sh49.89 billion on a prorated basis.
While assuring timely disbursements of the cash to the counties, Dr Ruto has in the past also maintained that his administration will not resort to borrowing to clear arrears.
“Last year [ending June 2022] they crossed the financial year with debt, but this year [ending June 2023], I decided not to cross with county debt,” the President said on June 25.
“The governors told me that their money had been delayed and that the National Government was sabotaging the counties. I told them that I would not borrow anyhow; we would rather wait for some month so that we collect revenue from Kenyans.”
Governors have in the past faulted the Treasury for delayed disbursements which has seen them struggle to settle contractors’ dues, salaries, and allowances for health workers.
Opposition leader Raila Odinga in September accused the Ruto administration of attempting to “coerce governors into submission” before releasing cash on time.
“There is a need to amend the County Governments Act to have money allocated for the Counties released on time to stop the current bureaucratic requirements where Governors and officials from counties travel to Nairobi in the name of pushing for approval of their requisitions,” Mr Odinga said on September 29 in Mombasa.
“The National Government should release funds allocated to County Governments in time for effectiveness and efficiency in service delivery. This will go a long way in averting industrial actions by workers that end up slowing down service delivery to the people.”
The devolved units have years been in the spotlight for delaying payments to suppliers, with the Treasury repeatedly issuing ultimatums to either pay up or risk having monthly disbursements stopped.
