Treasury lends governors Sh29bn amid crisis

The national government will advance Sh29 billion to governors ahead of presidential approval of the counties cash law, throwing a lifeline to devolved units that had run out of money.

The 47 counties are expected to receive the money by Thursday following a deal announced Deputy President William Ruto Wednesday.

The governors will refund the national government the cash. On Tuesday, governors expressed concern that none of the 47 counties had money to pay salaries, following the delay in disbursement of the Sh227 billion revenue allocation due to the counties.

The Council of Governors chairman Isaac Ruto said the delay would likely cause a major labour dispute between county governments and labour unions, with the Union of Kenya Civil Servants threatening to have its members boycott work if the salaries were delayed.

“They should have the money in their accounts on Friday latest,” said Agnes Odhiambo, the Budget controller told the Business Daily on Wednesday.

The law allows the national government to spend at most 10 per cent of the national Budget for ventures that have not been provided by the law.

Of the Sh29 billion, each county will receive their monthly share of as provided for in the Division of Revenue Bill. Workers in various counties are yet to receive their July salaries.

The situation was caused by the delay in the enactment of the Division of County Revenue Bill, which sets the allocation to the counties.

The National Assembly approved the County Allocation of Revenue Bill last week with amendments to the version passed by the Senate. The Senate is reconvening next week to review the changes before it can be signed by the President Uhuru Kenyatta.