Release Funds For May and June, Governors Tell National Treasury

Kenyan Governors are now demanding the National Treasury to release funds for May and June amounting to ksh58 billion ($580 million).

The Council of Governors (CoG) has claimed $435 million disbursed yesterday is not enough to facilitate the operations in the counties.

While releasing the funds yesterday,  the National Treasury Cabinet Secretary Ukur Yatani said the amount was what the ministry owed the devolved units for April 2021. He directed the county bosses to use the funds to clear pending bills and pay statutory.

Mr. Yatani promised to clear the dues for May and June in the coming days.

However, CoG Finance, Planning, and Economic Affairs Committee Chair Ndiritu Muriithi has argued that the amount comprises of $390 million as an equitable share.  Out of the $390 million, $35 million is arrears owed to the Nairobi County, $86 million is arrears owed to sixteen county governments for March 2021, and $270 million is owed to 47 county governments for April.

“Whereas county governments remain committed to clear all the eligible pending bills, it is important to note that the National Treasury is yet to release funds for the months of May and June Financial Year 2020/2021 amounting to $580 million, to adequately facilitate seamless service delivery and payment of the pending bills,” reads CoG statement.

The county bosses had threatened to shut down operations at the counties today, June 24, after the Treasury delayed in distributing $1.02 billion owed to them. They complained of a lack of funds.

They slammed Treasury for releasing national government funds on time while delaying those of counties, an allegation that Yatani denied.

He told the Senate Finance and Budget Committee last week that the delay is triggered by the financial crisis the country is facing due to the Covid-19 pandemic.

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