The government has issued a response, just hours after the Council of Governors threatened to halt operations across all 47 counties due to a cash strap.
On Tuesday, November 18, the Council of Governors chair Ahmed Abdullahi chaired a council meeting where the county bosses resolved to shut down counties in 30 days if the two houses of Parliament failed to agree on cash to be disbursed to devolved units.
In their statement, the governors claimed counties were operating on unsustainable funds amounting to 50% of the equitable share based on last year’s allocation.
“The National Treasury is yet to disburse Kshs.63.6 Billion for October and November 2024 allocations. However, by December 2024, the 50% will have been exhausted which means Counties will not receive any disbursement from January 2025,” Abdullahi said in a statement.
Council of governors chair Ahmed Abdullahi during a past address. PHOTO/ Courtesy.
The CoG chair added, “We note with great concern the delays by the Controller of Budget to approve requisitions for the withdrawal of funds.”
However, in a swift rejoinder, the government, through the National Treasury & Economic Planning sought to debunk the governors’ claims as the government body posted a comprehensive statement to show disbursement to county governments had been made in full until October since the start of the new financial year.
“As of October 18, 2024, the National Treasury has fully disbursed funds to county governments, up to date with all payments except for the current month of November,” the Treasury insisted.
Documents obtained by Kenyans.co.ke show the county government allocation from June 2024 to October 2024 amounted to KSh 158,024,092,590.
Treasury Cabinet Secretary John Mbadi on Monday also dismissed the governors’ claims that no money has been disbursed since August 2024, confirming that Ksh.30.8 billion was disbursed on Monday thereby settling all debts owed to devolved governments.
“Today as I speak we have transferred all the money meant to go to the counties until the end of October. Let them pay workers. Let them make this country liquid because there is money for them” Mbadi said.
Mbadi further urged the governors to seek a resolution with Members of the National Assembly swiftly since the National Treasury will not be legally obliged to fund counties from December 2024.
Meanwhile, governors also took issue that the National Government continues to receive its shareable revenue after the National Assembly passed the Supplementary Appropriations Act 2024.
Abdullahi now predicts counties could experience a worrying financial shortfall from January 2025, when the interim arrangement involving the allocation of 50% of the equitable share based on 2023’s allocation comes to an end.
Treasury Cabinet Secretary John Mbadi during the review of Performance Contracting and Validation Meeting at the Treasury Building on October 9,2024.
Ministry of Treasury
