Treasury Disburses Ksh.30.8 Billion, Clears County Arrears
The National Treasury announced the release of Ksh.30.8 billion to counties on Monday, settling all outstanding arrears owed to devolved governments. This disbursement brings the total funds transferred to counties to Ksh.158 billion, covering payments for June 2024 arrears and monthly disbursements for July through October.
Treasury Cabinet Secretary John Mbadi attributed earlier delays in county fund disbursements to legal and administrative hurdles at the start of the financial year. Ideally, these transfers should occur by the fifth of every month, but counties have faced significant delays due to a stalemate over the Division of Revenue (Amendment) Bill.
A key point of contention is the Treasury’s proposal to cut Ksh.20 billion allocated to counties, supported by the National Assembly but strongly opposed by the Senate. Senators argue that once funds are allocated to counties, they cannot be retracted. Efforts to resolve the impasse through mediation have so far been unsuccessful, further delaying critical funds for county operations.
The delays have caused financial uncertainty for counties, affecting service delivery and development projectsa. With the latest disbursement, the Treasury hopes to ease tensions and provide relief to counties struggling to meet their obligations.
As debates over resource allocation continue, county governments and stakeholders are calling for prompt and consistent fund transfers to ensure smooth operations and the successful implementation of devolved functions. The Treasury’s actions will be closely monitored as discussions on the contested revenue-sharing bill progress.
