Governors accuse government of withholding county funds

Governors are now accusing government of withholding Sh74.7 billion for the 4th quarter beginning April 2017.

The Council of governors has said money disbursed by the National Treasury on 12^th May 2017 was for March 2017 allocations for counties.

“Such delays have continued to recur thereby compelling County Governments to borrow from local banks to mitigate effects of the shortages,” governors said in a press statement.

For example Wajir County is owed Sh2 billion; Kakamega County Sh3.2 billion; and Kitui County Sh2.6 billion.

Over the last four years, financial disagreements between the National and County Governments have taken center stage. Notably, there have been conflicts on division of revenue, allocation of conditional grants and development partner funds flow systems, among others. 

“Because we are in an election year, the budgeting cycle for the 2017/18 financial year was revised and all government entities are expected to have finalized their budgets before the dissolution of Parliament and County Assemblies.  However, County Governments have been unable to proceed since the Division of Revenue Bill is yet to be passed. The mediation on this Bill has collapsed and it is not possible to table the County Allocation of Revenue Bill before the Division of Revenue Bill is debated and enacted.   What is more catastrophic is that the National Assembly has gone ahead to republish the disputed Bill which had allocated Sh291 billion to Counties”.

Governors say the National Treasury has no mandate whatsoever to delay or withhold monies already earmarked for Counties except in accordance with the provisions of Article 225(3) of the Constitution.