This archive report was first published on 19 July 2020.
Sunday, July 19, 2020
Counties were left reeling after the National Treasury withheld Sh48 billion in disbursements at the end of the financial year to June, triggering a cash crunch in the devolved units.
The Treasury had initially allocated Sh362.8 billion to counties, comprising Sh316.5 billion in equitable share and Sh22.8 billion in conditional grants.
However, the delayed disbursement has left counties struggling to pay suppliers and workers' salaries, with some even resorting to industrial action and stalled projects.
According to Treasury Cabinet Secretary Ukur Yatani, the release of the equitable share of revenue to counties would be pegged on honouring verified bills.
Yatani's statement came in the wake of ballooning pending bills in the devolved units, which have led to cash-flow problems for contractors and suppliers, crippling their operations.
By the end of January, the 47 devolved units had paid out Sh33.35 billion, which helped settle 59.28 percent of the Sh51.2 billion pending bills validated by the Auditor-General as of June 2019.
