Gachagua, CS John Mbadi Unveil Resolutions After Meeting at DP’s Home
Deputy President Rigathi Gachagua emphasized the government’s commitment to ensuring all allocated funds reach counties, despite current financial constraints following the withdrawal of the Finance Bill 2024.
Speaking during the 24th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC) at his Karen residence in Nairobi, Gachagua assured county leaders that last year’s financial allocations had been fully disbursed.
Gachagua also informed IBEC that the National Treasury is focused on clearing pending monthly allocations to counties.
These devolved units have frequently clashed with the Treasury over delays, which have affected service delivery.
He noted that in the last financial year (2023/24), the Treasury disbursed Ksh 354.5 billion to counties by June 30, 2024, representing 92% of the equitable share. The remaining Ksh 30.83 billion for June was released in July.
The Deputy President urged governors to prioritize settling outstanding bills within their counties to stimulate economic growth.
According to the National Treasury, national government pending bills had decreased from Sh622.82 billion in June 2023 to Sh516 billion by June 2024.
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Similarly, 26 counties reported a reduction in their pending bills from Sh43.6 billion to Sh33.9 billion as of June 2024.
Treasury Cabinet Secretary John Mbadi announced plans to release revenue to counties for July and August by September 2024, responding to counties’ concerns over insufficient funds for staff salaries.
Gachagua also encouraged governors to collaborate closely with Controller of Budget Margaret Nyakang’o to implement measures addressing budgetary issues.
Regarding President Ruto’s directive on equitable revenue sharing from national parks, Gachagua confirmed that progress is being made, with the Ministry of Tourism forming a technical team to develop an implementation roadmap.
The IBEC agreed that budgets for the current financial year would need adjustments due to the Finance Bill 2024’s withdrawal.
Counties were advised to consider revising the Division of Revenue Bill and restructuring their Finance Bills accordingly.
The Council of Governors expressed the desire to engage with the Senate on the matter, highlighting the exceptional circumstances of the 2024/25 fiscal year.
Gachagua, CS John Mbadi Unveil Resolutions After Meeting at DP’s Home
