Editorials

EDITORIAL: Routine cash hitches to counties unacceptable

treasury

Treasury Building in Nairobi. FILE PHOTO | NMG

Reports that counties are yet to receive a single coin from the Treasury for the year that started in July are disturbing.

In 2010, Kenya created a second layer of government in the shape of 47 counties, handing them responsibility for basic healthcare, early education, local roads, and other infrastructure.

The counties are allocated about 10 per cent of the budget every year in what is intended to promote development in rural areas and correct the regional income imbalance.

The Treasury is now emerging as the weakest link in the quest to entrench devolution and erase the effects of the previous governance structure that saw the budget and social services managed by the President and a small coterie of ministers.

Delayed cash allocation to the counties is now becoming routine.

None of the 47 devolved units had received their allocations at the close of the first quarter that ended in September, which compelled the Treasury to loan them Sh20.3 billion to pay workers’ salaries.

This has manifested in suppliers’ pay and workers’ salary delays as well as frozen projects.

This is not the path a country that needs to spend more on projects to ease the rising youth unemployment should take.

Public service remains the biggest buyer of goods and services and reduced spending has an effect on economic growth.

The State spending puts money in private hands through demand for raw materials, which ultimately creates jobs.

Still, we need to raise spending on local roads, health and water infrastructure to attract investors that will help tackle acute youth unemployment.

Going forward, there should be a steady release of funds to counties as enshrined in the Constitution.

The supreme law requires that the Treasury release funds to the devolved units monthly to help them meet their obligations on time.

For counties in breach of the financial management law, the Constitution dictates that they get at least half of their monthly quota.

The bottom line is that governors should not be starved of resources that are critical to the delivery of public services at the grassroots.