The National Treasury has declined to disburse Sh15.58 billion as additional funds to counties after they failed to adhere to the terms and conditions required for 12 projects to be undertaken.
These included Sh3.49billion Water and Sanitation Development Project, Sh2.39 billion for the National Agriculture and Rural Inclusive Growth Project and Rural Inclusive Growth Project, and Sh3.89 billion for the Kenya Climate Smart Agriculture Project.
Other projects are Sh2.8 billion for the Kenya Informal Settlement Improvement project, Sh798 million for the Agricultural Sector Development Support Programme (ASDSP II), and Sh789 million for Transforming Health Systems for Universal Care Project.
“Delay in the enactment of county government Additional Allocations Act, 2022 and failure by some county governments to adhere to requirements of specific conditional allocations. For these reasons, the exchequer could not disburse (the funds),” Treasury Cabinet Secretary Ukur Yatani said.
This year in June, counties criticised the Treasury for delaying disbursement of funds.
They argued that these resulted in derailment in completion of key projects in the counties as some had to be stalled.
The treasurer however said it had distributed the equitable revenue share owed to counties for the financial year 2021/22 last month. Money had been wired to the counties by August 29, including all the outstanding balances amounting to Sh29.9billion.