Counties look set to delay salaries and payments to supplies after the Treasury failed to disburse Sh105.9 billion to the devolved units, a month before the close of the financial year.
Governors have warned that the delays threaten counties’ ability to respond to the Covid-19 pandemic, settle pending bills and pay salaries.
“The current outstanding amount owed to County Governments is Sh105.9 billion,” Council of Governors (CoG) chairman Martin Wambora said in a statement.
The revelation comes at a time some counties are reporting a higher Covid-19 positivity rate than the national average that stood at 5.8 per cent on Monday.
While the curve has dropped, the national positivity rate is not consistent and big variations continue to be witnessed.
The county bosses have in the recent past blamed players in the transport sector for the rapid spread of the virus, frustrating efforts by the devolved units to combat its spread.
“As a matter of urgency, we call upon the National Treasury, to immediately release these funds to counties,” said Mr Wambora.
The latest data from the Treasury shows counties had by April 30 received Sh239.8 billion of Sh383.6 billion owed, leaving a balance of Sh144 billion in the current financial year.
Data from the CoG shows Sh242.6 billion had been released to counties by May 26, leaving an outstanding Sh105.9 billion.
Of this amount, the Treasury owes Nairobi County Sh3.5 billion as arrears for 2019/2020 and another Sh3.9 billion for January and February.
This despite reported improvements in revenue collections by the taxman on the back of increased compliance and debt recovery initiatives.
In April, the Kenya Revenue Authority (KRA) collected Sh32.6 billion more or 22.63 per cent in taxes and levies compared with a year ago.
Revenue receipts in April amounted to Sh176.66 billion compared with Sh144.06 billion in April 2020 with the taxman saying the period was marked with gradual economic recovery compared with the similar month last year.
This marked the fifth month in a row that the KRA has outperformed monthly goals.
County governors have repeatedly blamed delayed disbursements for their woes, including industrial action and stalled projects.
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