Financial crisis looms for county governments due to undisbursed balances
Council of Governors Chairperson Anne Waiguru has written to Njuguna Ndung’u, Cabinet Secretary for National Treasury and Economic Planning, requesting that funds be disbursed to County Governments as soon as possible.
Waiguru expresses deep concern in the letter about the ongoing delays in disbursing funds to County Governments saying no county is yet to receive funding for the months of December 2022, January and February 2023.
According to Waigiru, the total outstanding balance is KES 92.5 billion.
“The Council notes with utmost concern the perennial delays in disbursing funds to County Governments. To date, no County has received funds for the months of December 2022, January and February 2023. The total outstanding balance amounts to KES 92.5 billion as follows: KES 29.6 billion owed to all 47 Counties for December 2022 allocation, KES 31.43 billion owed to all 47 Counties for January 2023 allocation and KES 31.43 billion owed to all 47 Counties for February 2023 allocation.
Waiguru stated that the disbursement of Counties’ funds has been unjustifiably delayed, in contravention of provisions in Article 219 of the Constitution of Kenya, 2010 as read together with Section 17 (6) of the Public Finance Management Act, 2012, which provide for timely disbursement of Counties’ equitable share of revenue.
“This unwarranted delay has jeopardized the operations of the Counties, rendered the Counties unable to pay salaries, suppliers or continue to offer essential services to citizens,” Waiguru noted in the letter.
Waiguru urged the CS to disburse the funds as soon as possible to ensure uninterrupted service delivery and the implementation of programs and projects budgeted for this fiscal year.
“Please not that further delays will leave the counties in precarious positions not desirable of a government,” she noted.