This archive report was first published on 11 November 2019.
On November 11, 2019, Deputy President William Ruto announced that the Intergovernmental Budget and Economic Council (IBEC) had rejected a proposal by county governments to access short-term loans from the Central Bank of Kenya.
The proposal was rejected following an agreement by East African countries to avoid borrowing from their central banks, with the aim of harmonizing the position by 2021, as stated by Deputy President Ruto.
He further explained that the national government is in the process of withdrawing from short-term borrowing, which was another reason for the rejection of the proposal.
However, Deputy President Ruto noted that Sh62 billion of money allocated to counties was paid in the first quarter, with only 20 counties yet to receive their share.
The council also agreed on a framework that will enable counties to assess their assets for creditworthiness, allowing them to access up to 20 percent of their revenues from their own and sharable revenues.
Regarding debts, Deputy President Ruto said that pending bills from 2017/2018 had declined from Sh108 billion to Sh34.5 billion in the current financial year.
He also mentioned that Sh2.1 billion out of the Sh2.7 billion owed to sugarcane farmers had been paid.
Additionally, Deputy President Ruto stated that counties will be required to transfer municipal courts to the Judiciary, which will facilitate the spaces they will occupy, following an agreement with the Chief Justice.
He also emphasized the need to build the capacity of municipal courts and enforcement officers to make them more professional, thereby alleviating the burden on counties.
