CoG warns of total closure of counties due to delay in Treasury funds »Capital News
NAIROBI, Kenya June 13 – Governors have warned that counties will be forced to close by June 24 if the National Treasury fails to disburse the 102.6 billion shillings owed to them.
The Board of Governors denounced the poor funding of counties by the national treasury, revealing that it had not disbursed the funds to deconcentrated units two weeks before the end of the fiscal year.
âUnfortunately, if the National Treasury does not release the required funds, the counties will not be able to offer basic services, which will force a suspension or complete closure by June 24,â said COG President Martin Wambora in a statement.
He urged the Treasury to release funds by June 18 to offer counties the remaining 8 days to meet budget controller’s requirements for budget access and spending.
“If the National Treasury frees overdue resources, counties will be able to pay most of the pending eligible bills, pay salaries on time and pay legal deductions,” Wambora said.
Counties had been given until June 30 to clear all outstanding bills amounting to Sh11.5 billion.
The governors also criticized the ministry headed by Ukur Yattani for systematically financing the national government at the expense of the deconcentrated units whose services benefit the majority of Kenyans.
The worst affected county, the COG noted, is Nairobi County, which has yet to receive 3.5 billion shillings for fiscal year 2019/20 and 2.6 billion shillings and 1.4 billion shillings. shillings for the months of January and February respectively.
Another 14.4 billion shillings is due to 25 county governments for the month of March while a cumulative 80.6 billion shillings is due to all 47 county governments for the month of April, May and June.
Wambora said the persistent delay in service delivery erodes gains made in decentralized governance and affects the economic growth of counties.
âIt is imperative that Kenyans understand that the funding of counties from the national treasury is not a favor but a constitutional obligation. The county taxpayer is also entitled to timely service delivery, âthe COG added.