Treasury Cabinet Secretary Henry Rotich with Global Fund executive director Mark Dybul (left) at a recent function in Nairobi. Photo/Salaton Njau
What you need to know:
The Kenya National Audit Office (Kenao) would be strengthened to monitor spending by the 47 county governments.
Counties will receive on average Sh17.5 billion this week in the first of monthly disbursements of the Sh210 billion allocated to them.
This follows the signing into law the Division of Revenue Bill, 2013 by President Kenyatta on Friday that paved the way for the transfer of the money from the the Consolidated Fund to respective County Revenue Funds.
Counties which misuse their allocations risk not getting their share next month under a legal provision meant to curb wastage.
Treasury secretary Henry Rotich said that the Kenya National Audit Office (Kenao) would be strengthened to monitor spending by the 47 county governments with disastrous consequences for those found in breach.
“I have the power under the Constitution and other enabling legislation such as the Public Finance Management Act, 2012 to stop funds to a county that misuse resources,” said Mr Rotich.
Article 190 (3) of the Constitution empowers the national government, through legislation (the Act) to intervene where a county government’s financial management does not comply with prescribed requirements.
Counties will receive on average Sh17.5 billion this week in the first of monthly disbursements of the Sh210 billion allocated to them.
This follows the signing into law the Division of Revenue Bill, 2013 by President Uhuru Kenyatta on Friday that paved the way for the transfer of the money from the the Consolidated Fund to respective County Revenue Funds.
The amount of shareable revenue to counties for the 2013/2014 Financial Year is Sh190 billion while conditional grants will account for Sh20 billion.
The County Allocation of Revenue Act originated from the Senate following the passage of the contentious Division of Revenue Act.
Mr Rotich told the Public Accounts Committee sitting last week that Kenao will be allocated additional resources in the supplementary budget.
MPs had raised concerns over the capacity of counties to manage devolved funds saying there were greater risk of misappropriation.
“County governments are spending money unchecked. If you pass by some of these counties you will sign some petty cash vouchers and pocket some change,” said Maara MP Kareke Mbiuki.
Deputy auditor general Alex Rugera said Kenao was facing serious budgetary challenges given its constitutionally expanded mandate to oversee county operations.
“We have crated seven hubs in the Coast, Central, Eastern, North and South Rift Valley, Western, Upper and Lower Eastern and we have seven directors for the regions. However we have no funds to employ auditors and other operational costs,” he said.
