Relief as Treasury releases Sh15 billion to counties

The National Treasury on Tuesday disbursed Sh15.1 billion to the counties to alleviate a cash crunch that was crimping the devolved units.

This has now completed the disbursement for February, following the release of the first tranche of Sh17.82 billion on Monday last week.

A disbursement of Sh65.84 billion for March and April remains outstanding.

The Treasury has been erratic in disbursement, often falling behind several months, disrupting the provision of crucial services, including payment of salaries.

Last November, governors warned of a total shutdown of services if delayed disbursement of sharable revenue persisted.

Council of Governors chairperson Ahmed Abdullahi said counties had not received their equitable allocation more than five months into the 2024-25 financial year.

“We demand that the National Treasury immediately release the funds owed to counties; failure to which, county governments will have no choice but to shut down operations completely,” Abdullahi said.

Section 17 of the Public Finance Management (PFM) Act, 2012, obligates the Treasury to release an equitable share of revenues to counties by the 15th of every month.

That has not been the case.

The Exchequer has often blamed perennial under-collection of remittance by the Kenya Revenue Authority, competing funding needs and huge public debt for the delays.

An Exchequer disbursement schedule from the office of the Controller of Budget, Margaret Nyakang’o, shows that 22 counties received Sh15.10 billion on Tuesday.

They are Embu (Sh456.44 million), Garissa (Sh704.68 million), Isiolo (Sh418.49 million), Kilifi (Sh1.03 billion), Kisii (Sh790.99 million), Kwale (733.15 million) and Laikipia (Sh457.89 million).

Lamu received Sh276.62 million, Machakos got Sh815.76 million, Meru (Sh845.26 million), Murang’a (Sh638.50 million), Nakuru (Sh1.61 billion) and Narok (Sh785.55 million).

Others are Nyamira (Sh455.59 million), Nyandarua (Sh504.60 million), Nyeri (Sh554.08 million), Tana River (Sh580.10 million) and Trans Nzoia (Sh640.94 million).

The Treasury also released Sh1.12 billion to Turkana, Sh720.15 billion to Uasin Gishu, Sh841.73 million to Wajir and Sh15.10 million to West Pokot.

A week before, on April 14, the Treasury released some Sh17.82 billion to 25 counties to cover for February.

The amount went to Baringo (Sh568.12 million), Sh596.28 million to Bomet, Sh949.50 million to Bungoma, Sh638.76 million to Busia and Sh410.27 million to Elgeyo Marakwet.

Other counties that received the disbursements are Homa Bay (Sh694.47 million), Kajiado (Sh709.32 million), Kakamega (Sh1.10 billion), Kericho (Sh572.76 million), Kiambu (Sh1.04 million) and Kirinyaga (Sh463.18 million).

Kisumu received Sh714.45 million, Kitui got Sh925.30 million, Makueni got Sh722.27 million, Mandera received Sh993.70 million and Marsabit got Sh645.75 million.

Others are Migori (Sh712.73 million), Mombasa (Sh671.47 million), Nairobi (Sh1.71 billion), Nandi (Sh624.41 million), Samburu (Sh477.97 million), Siaya (Sh620.62 million), Taita Taveta (Sh430.62 million), Tharaka Nithi (Sh373.95 million) and Vihiga (Sh449.89 million).