Sunday, Oct 17, 2021
HomeEconomyTreasury releases Ksh.26.9 billion to counties

Treasury releases Ksh.26.9 billion to counties

National Treasury to release Ksh.39 billion to counties

The 47 counties will by close of business Friday, receive the outstanding Ksh.26.9 billion allocation for the month of June, of the just ended financial year.

To this end, Treasury Cabinet Secretary Ukur Yatani says his ministry has so far disbursed Ksh.289.6 billion to the counties, as equitable share for the Financial Year 2020/21.

“The outstanding balance amounting to Sh26.9 billion allocation for the month of June 2020/21 shall be released today, thus making a total of Sh316.5 billion, as allocated to County governments in Division of Revenue Act, 2020,” said Yatani in a joint statement with the Council of Governors.

The conditional grants amounting to Ksh.28.5 billion have been released to the devolved governments.

“This will enable counties to meet their important obligation to the private sector and spur economic activity at the county level as part of the ongoing and inclusive Economic Recovery Programme,” said Yatani.

This comes a few days after CS Yatani announced the transfer of Ksh.43.5 billion to county governments.

The Ksh.43.5 billion was to clear dues owed to the counties for April 2021, by Treasury.

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County governments have been given time to process and transmit payments through the integrated financial management information system, (IFMIS).

Governors have been asked to prioritize the settlement of pending bills owed to the private sector, to spur economic activity at the county level as part of the ongoing and economic recovery program.

The disbursement comes at a time when most counties were feeling the cash crunch that almost led to total shutdown.

Governors have decried the delayed release of funds by the national treasury.

On Thursday last week, the Council of Governors said the Sh43.5 billion disbursed by the National Treasury to the county governments was not enough to clear pending bills.

The council’s Finance Chairperson Nderitu Muriithi said the Treasury was yet to release funds for the months of May and June for the last financial year, which amounted to Sh58 billion.

“The amount disbursed on Wednesday is not sufficient to clear all the pending bills and at the same time facilitate normal county operations,” Muriithi said.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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