This archive report was first published on 12 December 2019.
On December 11, 2019, the National Treasury released a total of Ksh.18.4 billion to the remaining 30 counties after giving a clean bill of health to 18 units for submitting satisfactory frameworks on the clearance of Ksh.13.9 billion in eligible outstanding bills.
However, 17 counties have been left out in the cold after failing to meet the deadline for clearing their pending bills. The counties include Turkana, Kisumu, Samburu, Nakuru, Murang'a, Mandera, Kisii, Busia, Marsabit, Bungoma, Siaya, Trans-Nzoia, West Pokot, Kakamega, Wajir, Lamu, and Nairobi, which has the highest pending bills amounting to Ksh.9.8 billion.
The freeze is in defiance to the Parliamentary Budget and Appropriations Committee (BAC) rejection of the proposal to stop the said county transfers. The National Treasury has however stood firm on the block citing Article 225 of the Constitution and section 94 of the Public Finance Management Act on material breaches to first charge items to cover the clearance of outstanding supplier bills.
Acting Treasury CS Ukur Yatani has garnered the backing of the office of the Controller of Budget (COB) with Acting COB Stephen Masha having defended the position of Treasury during his appearance in the Senate on December 3.
The new freeze is set to draw the wrath of the Council of Governors (COG) who have previously reiterated on the negative impact of exchequer denials on day to day county operations.
