Operations in a majority of counties have been paralysed following the delayed disbursement of funds from the National Treasury for four consecutive months.
According to Kakamega Governor Fernandes Barasa, who appeared before the Senate Budget and Appropriations Committee on Thursday, Treasury owes county governments about Ksh.96 billion arrears accrued from January this year.
Governors have decried the dire situation saying they’re staring at the possibility of strikes by county staff over delayed salaries.
The financial crisis across all counties continues to deepen with the devolved units now entering the fourth month without their monthly disbursement from the exchequer.
This is the longest time the devolved units have gone without receiving cash from the National Treasury, a situation that has affected critical services and payment of salaries
“At the moment counties are on their knees because we’re not only missing money to pay salaries but we’re also missing money to buy commodities and also missing money to support systems that support health,” Tharaka Nithi Governor Muthomi Njuki said on the current situation.
Kisii Governor Simba Arati added: “Possibly, if there is no money three-four months down the line, what do you expect? You have no money you can’t pay salaries, people will down their tools and walk home.”
The Governors say they have been forced to suspend development expenditure as they seek alternative ways to get money to run the counties and pay salaries, with some opting to go for costly bank loans.
“It’s a big problem because January I had to borrow, for February I had to recycle again to pay the loan and borrow,” Nyamira’s Amos Nyaribo said.
“We rendered services in December for which we had not been given money, January February and March,” Migori Governor Ochillo Ayako added.
Governor Barasa, who chairs the Finance and Economic Affairs Committee at the Council of Governors (CoG), revealed that counties are yet to receive funds for 3 months.
“So far we have not received monies for January, February and March amounting to almost Ksh.96 billion…the worst comes with county assemblies where they expect that when you receive monies for December you pay them unto March,” said Barasa, who is also the Kakamega Governor.
While appearing before the same committee on Wednesday, National Treasury Cabinet Secretary Prof. Njuguna Ndung’u had promised that funds for January will be availed by end of next week.
The CS also asked Senate to okay the allocation of Ksh.385 billion to counties in the next financial year saying that the government will not be able to honour the Ksh.407 billion pushed by the Senate due to underperforming revenues.
The move was however criticised by the Governors who are asking for nothing less than Ksh.425 billion.
“The proposal by CRA is Ksh.407 billion, but that does not include the road maintenance levy which is almost Ksh.12 billion…that is why as Governors we’re not unreasonable to ask for Ksh.425 billion,” Barasa stated.
The Governors hope that the cash crunch will be addressed sooner rather than later to bring a return to normalcy at the devolved units.