This archive report was first published on 13 December 2019.
Kenya's High Court has intervened in a long-standing dispute between the National Treasury and county governments, ordering the release of funds to 35 counties that have yet to receive their equitable share.
The court's decision, handed down on Friday, December 13, 2019, comes after the National Treasury withheld the devolved units' allocation due to pending bills.
High Court Judge Weldon Korir directed the National Treasury and Controller of Budget to adhere to the disbursements of funds by the 15th of every month, as stipulated in the Constitution.
Seventeen counties were blacklisted by the Treasury over their pending bills, but the court's decision has paved the way for the release of funds to these counties.
On Wednesday, the National Treasury released Sh11 billion to 18 counties that had promised to settle their pending bills, while another Sh7 billion was released to 12 counties that had fully paid their pending bills.
However, the Council of Governors has accused the Treasury of exercising powers it does not have, and has filed a petition against the Treasury, Controller of Budget, and the Attorney General.
The petition argues that the withholding of funds to counties was irregular, as it had not been approved by Parliament as required by law, and that there was no substantive controller of budget whose report was paramount in the decision to approve the stoppage of funds process.
The full hearing of the petition has been set for January 28, 2019.
