To fix cash problems, counties should make and spend wisely

[Photo: Courtesy]

The outcry by county governments that most of the activities have been paralysed, following delays of disbursement of money from National Treasury points to a raw deal for taxpayers.

Any delay in getting money from National government means that funding for both recurrent and development expenditures are in disarray.

The financial sector is already feeling the impact through non-repaid loans as contractors and SMEs who did business with government grapple with delayed payments.

In addition, the delay could hurt the absorption level of money meant for development. The latest report of the Controller of Budget already showed that in the first quarter of current financial year, a record 37 counties had zero budget for development.

Any further delay puts into question the ability of the Governors to complete the planned projects bearing in mind that most development projects happen in phases.

National Treasury has just received Sh200 billion Eurobond. This should be put into proper use, including channeling it to county for development.

Governors should also ensure that once money is received, they fast track their planning, so that at the end of the current financial year, the money would have been utilised to improve lives.

Low under-utilisation of development money when workers have earned salaries every month only serves to keep counties poor.

As it is, most of the expenditure is leaning towards paying of salaries at the expense of suffering Kenyans across the counties.

The outcry for delayed funds should not just be amplified when workers go unpaid but also when development money delays as it did in the first three months of the current financial year.

More emphasis on development is the only way to ensure that counties reduce their reliance on National government.

The huge potential in the devolved units can only be unlocked with investments in well-thought out projects.

Both the Auditor General and Controller of Budget have also pointed glaring weakness in management of budgets at the counties.

Some have weaker financial control mechanisms while others spend revenues at source putting into question the accountability of expenditure.

This should be improved so that disbursement from National Treasury can transform the face of counties.