Treasury eases counties cash crunch with Sh19.5bn

The National Treasury building in Nairobi. FILE PHOTO | NMG

What you need to know:

  • All counties have received cash from the national government, pushing the allocation to the 47 units to Sh23.5 billion in September, up from Sh4.03 billion in the period to August.
  • This is an improvement from last year when none of the counties had received money from the Treasury in the quarter to September.

Treasury last month released Sh19.5 billion to the counties, easing pain on the 32 devolved units that had not received a cent in the first two months of the financial year to August.

The latest Kenya Gazette notice indicates that all counties have received cash from the national government, pushing the allocation to the 47 units to Sh23.5 billion in September, up from Sh4.03 billion in the period to August.

This is an improvement from last year when none of the counties had received money from the Treasury in the quarter to September.

Delayed exchequer releases coupled with poor own-revenue collections have seen counties struggle to meet their financial obligations in good time, leading to an increase in pending bills.

This has led to projects stalling, delayed workers’ salaries and frozen payments to suppliers, slowing down operations in the regional governments.

The Constitution requires the National Treasury to disburse counties’ share of revenue by the 15th date of every month.

Kiambu got the lion’s share of Sh1.1 billion, followed by Mombasa (Sh1 billion) and Kitui (Sh1 billion). Kirinyaga received the least (Sh205 million) with Vihiga and Nyandarua also at the bottom of the pile at Sh222 million and Sh245 million respectively.

Total allocation to the counties in the current financial year stands at Sh329.96 billion, which consists of the equitable share of national government revenue of Sh306.2 billion and conditional grants of Sh23.3 billion.

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Note: The results are not exact but very close to the actual.