This archive report was first published on 30 November 2019.
As the country approaches the festive season, the Council of Governors (CoG) has expressed concern over the delay in appointing a new Controller of Budget, which has led to a cash crisis in the devolved units.
According to a statement signed by CoG chairperson Wycliffe Oparanya on Friday, the delay has resulted in the inability of County Governments to pay for critical fiscal obligations, including November salaries, deductions, and procured supplies.
“As a result, County Governments have been unable to pay out the most critical fiscal obligations, including the November month salaries, deductions, and procured supplies, which included the pending bills,” Oparanya stated.
The CoG is also concerned that the 47 County Governments have not received their November monthly disbursement of Ksh 31.6 billion, which was legally due on 15th November 2019.
“All County Governments are on the brink of missing out on their targets for service delivery,” Oparanya warned, adding that the disruption has come at a critical time, with the payment of school fees for pupils joining form one in 2020 looming.
The CoG is calling for the disbursal of all pending allocations that are long overdue and should have been disbursed on 15th November 2019, to allow seamless service delivery and payment of pending bills.
“This will negatively affect all the suppliers and vendors within the county government if not addressed urgently,” Oparanya emphasized.
The cash crisis has been attributed to the end of the tenure of acting Controller of Budget Stephen Masha on 25th November, which has led to the inability of County Governments to withdraw any funds from the Revenue accounts.
President Uhuru Kenyatta had appointed Stephen Masha in an acting capacity following the exit of Agnes Odhiambo, whose term ended in August this year.
