Treasury paid final FY2021/22 county disbursement two months late, report says

The National Treasury disbursed the final instalment of the Financial Year 2021/22 in late August two months into the new financial year.

Speaking during the first day of the governors and deputy governor’s induction taking place in Mombasa, Tharaka Nithi Governor Muthomi Njuki said, “There is no county which has received the disbursement for July and we are now in September.”

But according to the National Treasury, the final instalment of the KSh 370 billion FY2021/22 equitable share allocation to counties amounting to KSh 29.6 billion was disbursed to the devolved units on August 29.

Under Article 219 of the Constitution and Section 17 (6) of the Public Finance Act, 2012,  Treasury is supposed to disburse funds from the County Equitable Share to all 47 counties before the end of every financial year.

The 2021/22 Financial Year ended on June 30, 2022.

In the August disbursement, Nairobi, Nakuru, and Turkana received the lion’s share. Nairobi County received KSh 1.54 billion while Nakuru County took home KSh 1.04 billion while Turkana got KSh 1.09 billion.

Lamu County which has a total population of 143,920 received the least amount getting slightly over KSh 248 million.

In July this year, governors decried the delays, terming them unwarranted and unjustifiable, saying the matter has further been worsened by the perennial downtime of the Integrated Financial Management Information System (IFMIS) due to the large number of transactions occasioned by the delays.

“The National Treasury should allow counties to transact through the IFMIS until July 15, 2022. This will enable counties to process and complete transactions that are already in process under the IFMIS,” the governors implored President Kenyatta in July.

Disbursement of the equitable share has remained a tussle between the national government and the county governments. The Council of Governors has time and again complained about the delays that have resulted in ballooning pending bills and at times have resulted in strikes among county workers.

County governments are allocated Sh407 billion in the current 2022/23 Financial Year have KSh407 billion after the Senate approved the Additional Allocation of Revenue Bill, 2022 which gave counties an extra KSh37 billion.

The Sh407 billion comprises Sh370 billion in equitable share and Sh37.1 billion in grants.

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