The Council of Governors has given the National Government nine days to disburse funds owed to counties.
Anne Waiguru, Chairperson of the Council of Governors and Governor of Kirinyaga has requested that the Kenya Kwanza government release the funds so that operations can resume in the devolved units.
Waiguru revealed that counties are currently struggling to pay salaries and other expenses necessary for the smooth operation of devolved units.
“The council calls for the immediate release of an equitable share of revenue owed to county governments for the months of May and June 2024 amounting to Ksh64 billion,” Waiguru stated.
“This is to ensure uninterrupted service delivery at the county. As it is, many counties are struggling to pay salaries.”
Tharaka Nithi Governor Muthomi Njuki, who also chairs the health committee, explained that counties were crippled by a lack of funds, stating that the national government only released funds for April this week.
Njuki stated that the national government had put the county bosses in a difficult balancing act as they decided whether to pay debts, fund recurring budgets, or remain trapped in the den of pending bills“The government owes us money for over two months.
For every county, two months’ disbursement is equivalent to maybe two or three months’ salaries,” Njuki said.
“Recently we were on the spot for not paying KEMSA debts. It will not be possible to settle the debts unless we get a full disbursement because we have a hard choice of paying salaries and KEMSA debt disbursement of up to June will enable us to make the payments.”
Waiguru also stated that the Council of Governors unanimously rejected the National Treasury’s plan to reduce the county’s equitable share by Ksh5 billion.
The Kirinyaga governor clarified that the National Treasury must follow the provisions of the Division of Revenue Act in order to avoid conflicts with county bosses.
“We note with concern that the national treasury wants to reduce the county equitable share by Ksh5 billion from the Ksh400 billion allocated in the division of revenue after a mediated process.
This unilateral decision not only undermines the spirit of devolution but also jeopardizes the essential services to be delivered to millions of Kenyans.”
“It is important that the national treasury is guided by the provisions of section 5 (1) of the Division of Revenue Act 2024.
The Council of Governors rejects this proposal in totality and demands that the national treasury retain the county’s equitable share as enumerated in the Division of Revenue Act 2024 after the mediated process,” the CoG chairperson stated.
The cry from devolved units came as the government was struggling to pass a Finance Bill that aimed to broaden the tax base and help the government raise more revenue.
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