Government yields to pressure after Waiguru’s ultimatum
The National Treasury Cabinet Secretary (CS), Njuguna Ndung’u, announced on Monday, April 24, 2023, hours after governors threatened to shut down services, that funds will be distributed to counties in the last week of April 2023.
The CS emphasized during his appearance before the Senate Committee on County Public Investments and Special Funds that the funds will be released to support devolution.
“The Treasury will disburse Ksh31.45 billion to counties for February 2023 by the end of this week.
In addition, disbursements for March and April 2023 will be issued in May 2023, while disbursements for May and June will be issued in June of the same year, according to the CS.
According to the Treasury CS, low revenue collection and high public debt obligations caused the delay.
He added that the Treasury was considering a substantial reduction in outstanding county debts. And a more efficient mobilization of resources to ensure timely funding.
In addition, governors were urged to cultivate their revenue sources. To ensure the continuity of services during delays in the distribution of equitable shares.
ALSO READ: Governors Threaten County Shutdown Over Delayed Funds Disbursement.
Njuguna’s announcement came hours after Anne Waiguru, governor of Kirinyaga and chairperson of the Council of Governors (COG), issued a 14-day notice to the government regarding delayed county funding.
“We also notify the citizens of Kenya that, due to the failure of the National Treasury to disburse the funds, County Governments will be unable to deliver services as expected,” she argued.
She also warned that governors would shut down counties if the government failed to disburse pending funds within two weeks.
“Treasury has not disbursed Ksh94.35 billion in total. “The COG urges the CS National Treasury to release the amount owed to the County Governments without further delay,” stated the COG chairman.
Waigiri argued that the delay was contrary to the Constitution. And the Public Finance Management Act of 2012, which mandate the timely distribution of the counties’ equitable revenue share.
“The four-month delay is unprecedented in the history of devolution. And contradicts the spirit of the meeting held in Naivasha. Between His Excellency the President of Kenya and His Excellency the Prime Minister of Kenya.” The President and Governors, lamented Waiguru.
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