Governors row with Treasury over delay in Sh52b counties' cash

Governors have demanded that Treasury pays billions of shillings it has failed to release to the county governments in the past two months.

Council of Governors Chair Martin Wambora said counties have not received funds amounting to Sh52 billion for the months of January and February, and this has paralysed most functions in the devolved units.

Wambora was speaking last week after a full council meeting that discussed issues affecting the county governments.

And now the county bosses are accusing the Treasury of sitting on billions of shillings intended for counties, thus disrupting delivery of services such as health and payment of salaries.

The county chiefs further accuse the Finance ministry led by Ukur Yatani of “not being committed to disburse billions of donor funds and equitable share to counties dating back to November 2020”.

According to Wambora, Sh4.2 billion is owed to six county governments for the month of November, and an additional Sh10.1 billion to 18 counties for December.

The devolved units have not received disbursements for two months, disrupting services, including the fight against Covid-19 that is on a third wave.

According to the chair, the governors had picked a team of five to represent them in a consultative meeting with the Treasury on March 12, but the meeting failed to take place.

Wambora had stated that the Council of Governors' team led by Nderitu Muriithi (Laikipia), Mwangi wa Iria (Murang’a), Alex Tolgos (Elgeyo Marakwet), Kirinyaga’s Anne Waiguru, and Nyeri's Kahiga Mutahi would attend the meeting to discuss the delay by Treasury to release the money.

Governors have warned that services in the counties could soon grind to a halt if Treasury continues to hold on to the funds.

“Counties are unable to pay salaries of staff and are also unable to attend to their financial obligations,” said Wambora. "As a result, crucial services have suffered, projects stalled, salaries delayed and pending bills have extended for a long time."

Early this month the county bosses sought the intervention of senators to summon Yatani to explain what they called inordinate delays in releasing cash.

The Treasury last released the county cash on January 20, after the county bosses threatened to shut down services because of the prolonged delays by the National Government to release the money.

However, the CS clarified that the Covid-19 pandemic had adversely affected revenue collection by the Kenya Revenue Authority. 

Treasury and the Council of Governors have been at loggerheads for a long time, with the two sides trading blame on the delays in release of county funds.

Governors have in the past accused Treasury and National Government officials of deliberate misinformation on  the delayed disbursement of funds to the counties.

In December 2019, CoG had moved to court to challenge Treasury's decision to block funding for 17 counties, which had not cleared their bills and had not submitted a structured plan for doing so.

And in October last year, they moved to court again to compel the National Treasury to release 50 per cent of the equitable allocation.