The National Treasury has released Sh24 billion to counties on improved revenue collection, offering a cash flow boost to the cash-strapped devolved units.
The disbursement means that counties have now received Sh144.8 billion of their scheduled equitable share of the Sh316.5 billion for the financial year to June.
The payment comes barely a week after the Kenya Revenue Authority (KRA) disclosed it collected Sh166 billion in December, against its set target of Sh164 billion.
The National Treasury has released Sh24 billion to counties on improved revenue collection, offering a cash flow boost to the cash-strapped devolved units.
The disbursement means that counties have now received Sh144.8 billion of their scheduled equitable share of the Sh316.5 billion for the financial year to June.
The payment comes barely a week after the Kenya Revenue Authority (KRA) disclosed it collected Sh166 billion in December, against its set target of Sh164 billion.
“Noting the general improvement of the economy and in particular positive change revenue performance since December 2020, the National Treasury will prioritise disbursements to county governments,” said Treasury Cabinet Secretary Ukur Yatani.
Last week, the Treasury said it had disbursed a total of Sh133 billion to county governments for the financial year which comprised Sh120.2 billon from the equitable share kitty and Sh13 billion as conditional grants.
Governors have repeatedly faulted Treasury for delayed disbursements which has seen them struggle to settle contractors’ dues, salaries and allowances for health workers amid the Covid-19 pandemic.
In September, governors threatened to shut down county services and send staff home if Senators failed to resolve a three-month stalemate on the formula for sharing Sh316.5 billion among the 47 devolved units.
Data published in the Kenya Gazette shows counties received the first tranche of funds for current financial year in October after Senate agreed on the revenue sharing formula.
The data shows Treasury released Sh78.4 billion in October, which was a Sh12 billion increase from the Sh66.1 billion released at a similar time a year ago.
“It is our hope that county governments will prioritise the settlement of pending bills to suppliers as well as other statutory dues to enable the concerned institutions discharge their mandates effectively,” said Mr Yatani.
The Treasury ordered an audit on ballooning pending bills after they rose from Sh37.8 billion in the year ending June 2015 to over Sh108 billion as of June 2018.
The audit showed that only those amounting to Sh51.2 billion out of the total outstanding bills by June 2018 were eligible for payment.
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