The Council of Governors (CoG) is up in arms against the national government over delayed disbursement of county allocations for the months of May and June this year amounting to Sh64billion and have issued a nine days’ ultimatum to president William Ruto.
Yesterday, the governors also rejected the National Treasury’s plan to reduce budgetary allocation to devolved units in the current financial year by Sh5billion.
“We wish to state unequivocally that the council rejects this proposal in totality. The decision undermines devolution and jeopardizes essential services for millions of Kenyans.” Council of Governors (CoG) chairperson Anne Waiguru said at the council’s headquarters in Nairobi.
The Division of Revenue Act, of 2024 allocated counties Sh400.12 billion. Waiguru also cited Section 51 of the law, which stipulates that any shortfall in nationally raised revenue should be borne by the national government, not counties.
She said the Treasury retained the county equitable share as outlined in the Act after the mediated process.
They said many counties were struggling to pay salaries, noting that allocations for April were only received recently.
The CoG sounded alarm to the national government against any move to deduct monies allocated to counties in the 2024/2025 budget insisting counties should never suffer, as per the law, and if there is a loss, it should be borne by the national government.
The governors led by CoG chairperson Anne Waiguru who also doubles as the Kirinyaga governor spoke immediately after a meeting with Health Cabinet Secretary Susan Nakhumicha over the country’s shift from NHIF to the Social Health Insurance Fund (SHIF).
They now want president Ruto’s administration to release monies owed to counties before the end of the financial year in the next 9 days.
Waiguru noted that the national government owes counties about Sh64 billion, being money for May and June, and thus should be disbursed as soon as possible to avoid it being a pending bill.
Tharaka Nithi governor Muthomi Njuki, who is also Health Committee chairperson said counties were crippled with lack of funds, saying the national government only released funds for April this week, which can only pay salaries and not in full.
The governors want the national government to be consistent in disbursement, noting president Ruto had set a precedent of offsetting all monies owed to counties by the close of the financial year and that should continue.
The 2023/2024 financial year closes on June 30, 2024, which is due in 9 days’ time.
On health, the CoG wants all debts owed to the now defunct NHIF totalling to Sh8 billion settled, before the transition to SHIF.
According to the governors, for a smooth transition, there must be concurrence on pending bills.
Moreso, governor Njuki says there are pending bills at KEMSA that will only be paid if the National Government settles its debts to counties.
