A total of Ksh 39 billion will be released to the county governments by the end of this week, the National Treasury & Planning Cabinet Secretary (CS), Ukur Yatani, has said.
Yatani who appeared before the Senate Finance and Budget Committee, Tuesday, told Senators that the Ministry will endeavour to disburse the funds to clear April and part of March arrears.
“We will ensure that we disburse Ksh39 billion by the end of Friday,” he told the Committee, attributing the delays to the cash collection slowdown occasioned by the Covid- 19 pandemic.
The CS made the statement in response to the Council of Governors, who Monday threatened to shut down the devolved units next Thursday if the funds are not disbursed by Friday.
Through Council of Governors Chairperson, Martin Wambora, the Governors decried frequent delays to disburse the cash in what they say has crippled operations and delivery of critical services to residents.
“National Treasury is yet to release cash to counties like Nairobi for up to six months now,” Wambora said during yesterday’s media brief, adding that a total of Sh 102.6 billion is yet to be disbursed to the 47 devolved units.
Wambora had noted that the Treasury has not only failed to comply with the Constitution but also with its own document, the Cash Disbursement Schedule, 2020.
The Constitution and Public Finance Management Act, 2012 require the Treasury to release cash to counties by 15th of every month.
The CS also appealed to the counties to prioritize payment of pending bills to ensure a sustainable business climate.