Major boost for counties as State releases Sh105b

Kenya: Lamu has received the lowest disbursement of money in the fourth and fifth tranche of the equitable share of revenue to the County governments released on January 21.

Located in the Kenyan coast, Lamu is the only County to have been allocated less than a billion shillings in the recent release that now completes the allocated funds that were scheduled for November and December 2014.

The released funds that include the equitable share of revenue and a conditional grant form Royal Danish Embassy that is meant for supplementing financing for health facilities amount to Sh105 billion.

Collectively, the the Counties had accumulated Sh30 billion in their revenue account, Sh5 billion in recurrent account and Sh8 billion in the development account with the total bank balances remaining in the County bank balances at the Central Bank of Kenya (CBK) as at January 21 being Sh43 billion.

Other than Lamu, the other counties that received the least amounts in ascending order are Isiolo (1.2b), Tharaka Nithi(1.26b), Taita Taveta (1.3b), Elgeyo Marakwet(1.3b), Laikipia(1.39b), Kirinyaga(1.4b), Samburu(1.4b), Vihiga (1.5b),Tana River(1.6b), Embu (1.63b) and Nyamira (1.67b).

Interestingly, according to the advert in newspapers announcing the release of the funds published yesterday, Lamu is the only County that received less money than the bank balance remaining in its bank accounts at the CBK as at January 21.

As a percentage to the bank balances at the CBK as at January 21 against the funds released, Nairobi is the only county that had spent all the money allocated in the previous tranche leaving only Sh24 million in its accounts, either revealing a high absorption rate of the funds or heavy demands that have overstretched the county’s kitty.

Bomet county also exhausted its kitty leaving a paltry Sh25 million that represents one per cent, followed by Kiambu (8%), Kisii (9%), Vihiga (11%), Nyeri (17%), Murang’a (17%), Migori (19%), Homabay (12%) and then Machakos (20%) completing the top 10. In the released funds, Nairobi county has the largest share having received Sh5.3 billion followed by Turkana (Sh4.2b), Kakamega (Sh3.7 b), Mandera (Sh3.6 b) and then Nakuru ( Sh3.4 b) filling in the top five positions.

Development projects

These Counties are followed by Kiambu (Sh3b), Kilifi (Sh2.9b), Kitui (Sh2.93b), Wajir (Sh2.9b) and then Meru that received Sh2.6 billion. The released funds will now help the counties to finance development projects that had almost stalled due to lack of funds. They will also possibly quell rising tensions and demonstrations in various counties.

In September, the governors announced that they will will abandon the Pesa Mashinani campaign if Parliament passed a law guaranteeing counties more cash.

The Governors are pushing the Government to abide by the decision of the Commission on Revenue Allocation to allocate Sh274 billion to the counties counties. They currently receive Sh226 billion.

In December last year, the Controller of Budget Agnes Odhiambo praised counties for allocating more funds as development expenditure.

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