This archive report was first published on 18 September 2019.
On September 17, 2019, President Uhuru Kenyatta assented to the Division of Revenue Bill 2019, paving the way for the release of Sh50 billion to counties. This move ends a three-month stalemate that had threatened to paralyze county operations.
Acting Treasury Cabinet Secretary Ukur Yatani attributed the delay in passing the Division of Revenue Bill to its adverse effects on county operations for the 2019-20 financial year. He noted that the delay had caused negative consequences on socio-economic activities countrywide and the delivery of crucial public services like health.
According to Yatani, the Sh50 billion release includes delayed disbursements for July and August, while the September disbursement will be made before the first of next month. The law authorizes Sh378.1 billion for county governments for the 2019-20 financial year, with Sh316.5 billion as an equitable share and Sh61.1 billion as a conditional allocation.
Yatani urged governors to prioritize the settlement of pending bills, with counties owing Sh100 billion as of February 2019, including payments for the supply of drugs from the Kenya Medical Supplies Agency (Kemsa), electricity, and water payments among others.
Kenya Revenue Authority (KRA) Commissioner General James Mburu welcomed the disbursement, stating that it would enable the taxman to pursue county governments and suppliers to voluntarily remit their outstanding tax returns. He noted that counties owe more than Sh13 billion in monies deducted from employees, hindering county staff from obtaining tax compliance certificates.
