The National Treasury is set transferred Sh.26.9 billion to county governments as disbursement for June in the financial year 2020/2021.
In a joint statement with the Council of Governors’, Cabinet Secretary Ukur Yatani said the money should be prioritised in the clearing of pending bills.
“The outstanding balance amounting to Sh.26.9 billion allocation for the month of June 2020/21 shall be released today, thus making a total of Sh.316.5 billion, as allocated to County governments in Division of Revenue Act, 2020,” read the statement.
Yatani said an additional Sh.28.5 billion in conditional grants has also been released to the counties.
The money will enable counties to meet their important obligation to the private sector and spur economic activity at the county level as part of the ongoing and inclusive Economic Recovery Programme.
This comes after Council of Governors (CoG) said the additional Sh.43.5 billion disbursed to County Governments is not enough to clear all pending bills and still run the counties effectively.
Finance, Planning and Economic Affairs Committee Chair Ndiritu Muriithi, said the amount disbursed comprises of Sh.39 billion as equitable share.
Out of this, Ndiritu said, Sh.3.5 billion is arrears owed to the Nairobi County government, Sh.8.692 billion is arrears owed to 16 county governments for the month of March, and Sh.27.052 billion is owed to 47 county governments for April.
“It is important to note that these amounts are the normal monthly allocation to County Governments to facilitate delivery of services to the citizen,” said Ndiritu.
The governors said the delay in disbursement by Treasury led to the county governments owing employees salaries from March to present, hence a big chunk of the funds will be used to settle these arrears as well as statutory deductions to KRA, NHIF and NSSF.
Meanwhile, suppliers and contractors have stormed the Kisumu County Treasury protesting inordinate delays in payment of pending bills .
They are demanding immediate settlement of their dues.
Similar delays have been replicated in all county governments, county assemblies, national government ministries, departments and parastatals.
The order by Yattani to have all pending bills settled by end of last financial year that ended on June 30, 2021 has been widely interpreted as mere empty public relations exercise.
