This archive report was first published on 1 December 2019.
As the financial year comes to a close, counties are facing a severe cash crunch, with thousands of workers yet to receive their November salaries.
The crisis is attributed to the expiration of the acting Controller of Budget Stephen Masha's tenure on November 25, without releasing funds to the devolved units.
President Uhuru Kenyatta had appointed Masha as the Controller of Budget in an acting capacity on August 27, for a period of 90 days.
According to the Constitution, the National Treasury is required to disburse the counties' share of revenue by the 15th day of every month. However, the total equitable share allocation to the counties in the year starting July is Sh316.5 billion, which has not been disbursed on time.
Speaking on Sunday, Council of Governors chairman Wycliffe Oparanya said counties are grappling with cash flow problems that have crippled services and stalled projects.
“County governments have been unable to pay out the most critical fiscal obligations including November salaries, statutory deductions and procured supplies,” Oparanya said.
Meru deputy governor Titus Ntuchiu, who is also the Finance Executive, said they had not paid salaries due to the delay.
“We urge the National Treasury to expedite release of the money because besides salaries there are other crucial services that have been grounded, including buying of drugs for our hospitals,” Ntuchiu added.
Other counties that confirmed being in the same predicament include Kirinyaga, Mombasa, Kilifi, Samburu, Nandi, Elgeyo Marakwet and West Pokot.
Margaret Nyakango, a director at the Kenya National Bureau of Statistics (KNBS), has been nominated to be the new Controller of Budget and appeared before National Assembly’s Committee on National Planning last Thursday for vetting.
