Governors to sue Treasury over delayed release of funds

Written By: Margaret Kalekye

CoG accuses Treasury, Controller of Budget for cash crunch in counties
Council of Governors Chairman Wycliffe Oparanya

The Council of Governors is protesting the delayed disbursement of equitable share for four months, amounting to Ksh94.7 billion.

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In a letter to National Treasury Cabinet Secretary Ukur Yattani, the county governments are now threatening legal action and suspension of services if the funds are not forthcoming.

COG chair Wycliffe Oparanya lamented that counties cannot function optimally due to lack of funding adding that county staff including contractors had not been paid for three months.

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The Governors have warned that services in the counties could soon come to a halt if the Treasury continues to hold onto the funds.

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“We note with utmost concern that County Governments have not received disbursements for October, November, December 2020 and January 2021. Some of the Counties have not even received the September disbursement bringing the total balance to Ksh.94-7 Billion. .. County Government Civil Servants have not been paid salaries for three months and National Government Civil Servants have been paid all their dues and statutory deductions made” said Opranya.

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He appealed to the CS to urgently expedite disbursement of equitable share to County Governments to ensure uninterrupted service delivery.

“Please note that if the disbursement is not made forthwith the County Governments will have no other option other than seek legal redress while closing down to minimize further damage and suffering to employees”.

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The letter dated Monday is copied to Speakers of both houses and Controller of Budgets.

Counties were allocated a total of Sh378.1 billion – Sh316.5 billion for equitable share and conditional grants by the national government.

 

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