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Economy

Treasury advances Sh18bn for county salaries after hitch

National Treasury Cabinet Secretary Henry Rotich, November 8, 2016. FILE | PHOTO | NMG
National Treasury Cabinet Secretary Henry Rotich, November 8, 2016. FILE | PHOTO | NMG  

Cash hitch has forced the Treasury to advance some county governments Sh17.9 billion to pay salaries after the Senate delayed to approve a schedule for release of money from the government’s main account to the devolved units.

The Treasury secretary Henry Rotich said the County Allocation of Revenue Act (CARA) 2017 was assented to by the President but the approval of the disbursements schedule was delayed.

“However, the schedule of disbursement is yet to be approved by the Senate. Accordingly, the national Treasury advanced a total of Sh17,901,075,558 to some county governments to enable them pay salaries and provide essential services,” Mr Rotich said in a gazette notice.

The notice indicates that none of the 47 counties had received their allocations from the government main account by August 31.

Total allocation to the counties in the current financial year stands at Sh329.96 billion which consists of the equitable share of national government revenue, conditional grants from the State and conditional loans and grants from development partners.

The Constitution requires the national Treasury to disburse counties’ share of revenue by the 15th date of every month.

The Senate two weeks ago moved to correct the anomaly by approving the national Treasury’s cash transfer schedule for all counties that will run from July this year to June 2018.

Senators unanimously approved the County Government’s Cash Disbursement Schedule in a session chaired by Speaker Kenneth Lusaka and dominated by Jubilee members when opposition members boycotted parliamentary business.

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