HomeCountiesCounty Shutdown Looms as National Treasury Delays Disbursement

County Shutdown Looms as National Treasury Delays Disbursement

  • EDITORIAL BRIEF: It is crucial for the National Treasury to disburse the counties’ equitable share on time to enable county governments to carry out their functions efficiently. The delayed release of funds has negatively impacted county operations, with most counties unable to pay salaries, contractors, and suppliers. The threat to shut down counties is a wake-up call to the National Treasury to release the owed funds promptly.
  • The Senate should also prioritize the welfare of county governments by allocating more resources to ensure that they deliver quality services to their citizens. The Devolution Conference provides an opportunity for stakeholders to discuss issues affecting devolution and come up with strategies to enhance its success. It is vital that all stakeholders participate in the conference to ensure that devolution continues to improve the lives of Kenyans.

The Council of Governors (CoG) has issued a threat to shut down all 47 counties within 14 days if the National Treasury fails to disburse the counties’ equitable share. The CoG Chairperson, Anne Waiguru, revealed that as of April 24, the Treasury had not disbursed Ksh.94.35 billion, which marks an unprecedented four-month delay in the history of devolution.

Waiguru urged the National Treasury to immediately release the owed funds, warning that county governments will be unable to deliver services as expected if the arrears for February, March, and April are not released within two weeks.

The governors expressed their dissatisfaction with the Senate’s voting on the Division of Revenue Bill, 2023. The Senate rejected an amendment that would have seen the devolved units receive Ksh.407 billion equitable share in FY 2003/24.

The CoG noted that the Senate had never voted against the spirit of devolution in as far as increasing resources for county governments are concerned. The governors called on the Senate to uphold its primary mandate of ensuring that county governments are well-resourced to perform their functions optimally.

The CoG also announced that the 2023 Devolution Conference would be held in Uasin Gishu County from August 15-19.

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