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Counties' Financial Woes: A Wake-Up Call

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 22 November 2019.

Published on November 22, 2019, a day that marked a turning point for Kenya's 47 devolved units.

While the counties have been credited with visible development across the country, their financial management has been a major concern.

Corruption has taken root in some counties, with officials motivated by self-gain, and the inability to manage finances has led to a monumental problem of pending bills.

These bills have provided an avenue for rent-seeking, with suppliers waiting for payment from the National Treasury, only to have it shared between crooked officials and favoured suppliers.

The situation has driven some suppliers into bankruptcy, with banks and other lenders recalling loans.

However, in a move to instil financial discipline, the National Treasury has cracked the whip, threatening to withhold allocations from counties that fail to pay their pending bills.

This is a long-overdue step, and it's a shame that the government has been forced to resort to it.

But more importantly, the counties must develop their own sources of revenue instead of relying solely on the National Treasury.

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