Economy

Treasury disburses Sh52bn to counties for July, August

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Treasury Cabinet Secretary Ukur Yatani. FILE PHOTO | NMG

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Summary

  • Counties Tuesday received Sh52.2 billion, the first disbursement for the year to next June, ending a cash crunch that threatened to grind service delivery to a halt.
  • Treasury Secretary Ukur Yatani said the cash is for July and August that had been withheld due to delays in the passing of the County Allocation of Revenue Act (CAR) 2020.

Counties Tuesday received Sh52.2 billion, the first disbursement for the year to next June, ending a cash crunch that threatened to grind service delivery to a halt.

Treasury Secretary Ukur Yatani said the cash is for July and August that had been withheld due to delays in the passing of the County Allocation of Revenue Act (CAR) 2020.

This is Sh25.32 billion for July and Sh26.903 billion for August. Treasury did not say when the counties will receive Sh26.903 billion due for last month. The release of the money paves the way for counties to pay salaries for their workers, settle pending bills to small businesses and fund key services like hospitals that risked grinding to halt due to lack of money.

This comes days after President Uhuru Kenyatta signed into law the CAR 2020 that had delayed for three months as Senators failed on a formula for sharing of the cash amongst the 47 counties.

“We are today October 13, 2020, releasing Sh52.2 billion to the county governments being their equitable share for the months of July and August 2020,” said Mr Yatani.

“On the same note, we urge the county governments to give priority to the settlement of pending bills.”