Kisumu County blames Treasury delays for Sh2 billion voided transactions
Kisumu County Executive Committee Member for Finance George Okong’o during the launch of the city's revenue collection system at Mama Grace Onyango Hall, Kisumu on February 5, 2025.
What you need to know:
- County termed the voided payments as flagged by the National Treasury in a recent report as "normal end of financial year procedure".
- County also cited changes in opening balances and occasional rejections by the Controller of Budget as other reasons for the voids.
Kisumu County Government has defended itself against claims of misuse of public funds, maintaining that voided payments are not evidence of impropriety.
County Executive Committee Member for Finance George Okong’o said the voids were primarily caused by delayed national disbursements and lower than expected local revenue collections.
He termed the voided payments as flagged by the National Treasury in a recent report as "normal end of financial year procedure".
The county's finance boss was reacting to the Sunday Nation story which reported that Kisumu was among 15 counties with the highest value of voided transactions, raising concerns about possible financial mismanagement or diversion of funds meant to clear pending bills.
“The June 2024 disbursement alone delayed by Sh668.9 million and our Own Source Revenue fell short by Sh1.47 billion. These two items account for over Sh2.14 billion in voided transactions,” said Mr Okong’o in a statement.
"This is a standard practice to allow the system to be cleared ahead of uploading a new budget,” Mr Okong’o said.
He added that the payments had already been processed through the Integrated Financial Management Information System (IFMIS), but were later cancelled due to insufficient funds in the County Revenue Fund (CRF) at the Central Bank.
The County also cited changes in opening balances and occasional rejections by the Controller of Budget as other reasons for the voids.
While acknowledging that the issue highlights deeper financial planning challenges in the counties, Kisumu dismissed the notion that the payments were voided to mask corruption or diversion of funds.
“For counties like Kisumu that inherited a bloated workforce and manage large institutions like the regional referral hospital, staying within fiscal ceilings, especially on the wage bill, is a delicate balancing act,” Mr Okong’o said.
He welcomed steps by the National Treasury to address the issue but called for a broader review of fiscal ratio regulations and how they affect planning and service delivery at the county level.
vraballa@ke.nationmedia.com