Council of Governors wants new projects suspended to stem financial crisis

The Council of Governors (CoG) has asked the Government to suspend all new projects to save the country from a financial crisis that has paralysed development projects at the county level.

The crisis in the country has affected development plans at the county level as most counties have not received funds meant for August, September and October.

CoG Finance Committee Chairman Wycliffe Oparanya has insisted that the Government is 'broke' and blames it on alleged overspending beyond the financial capacity.

"The Government is strained due to lack of enough funds. It is clear the Government is broke because it has an over expenditure against limited funds collected as revenue. Tax collection is projected at Sh1.2 trillion yet the Government budget stands at Sh2.37 trillion," Oparanya said.

He said the Government should stop initiating new projects until it clears the older projects as initiating more projects is straining the economy of the country.

Oparanya, who is also the Kakamega Governor, said CoG is set hold an urgent meeting in Naivasha to discuss the financial crisis, which has halted development plans at the county level.