The Treasury wired Sh13.6 billion more to counties in the first five months of the current financial year, signalling efforts to speed cash transfers to the devolved units following a persistent outcry from the regional governments.
Data from the Treasury shows the counties received Sh122.1 billion in equitable share in the five months to November 2022, up from Sh108.45 billion that was wired to them in a similar period last year, representing a 12 per cent rise.
The transfers in the current financial year highlight a shift from the previous administration where counties endure delays in the release of their funds.
The hitches have in recent years threatened to ground operations given that the devolved units rely on cash from the Treasury to run operations.
The previous administration cited low revenue collections for the delays in disbursing cash to counties amid debt-serving obligations that further drained the Exchequer.
“The low performance of revenue raised nationally impacts on our disbursement not only to the counties but also to the rest of government,” Treasury officials told Parliament in September.
Delays in passing the Division of Revenue Bill also forced Treasury to delay the release of the cash due to the 47 devolved units.
The Sh122.1 billion is part of the billions in shareable revenue between the national and county governments.
Counties have been allocated Sh370 billion in equitable shares for the year ending June.
But county chiefs last month warned that the purchase of medical supplies, development projects, and response interventions to drought and disaster management has been grossly affected due to delays in the release of cash by the Treasury.
Past delays in the release of the cash to counties have been blamed on stand-offs between the National Assembly and Senate in passing the Division of Revenue Bill and cash-flow hitches at the Treasury.
In 2020, the two Houses failed to agree on the Division of Revenue Bill, leading to more than three months of delays in the release of the cash.
Health workers in Nairobi, Homa Bay, Kisumu, Siaya and Kisii counties either issued strike notices or downed their tools over payment of salaries.
Counties have since the start of devolution been missing their internal revenue collection targets, forcing them to rely on cash transfers from the Treasury.
