Treasury says no arrears owed to counties after Ksh.30.8 billion disbursement

The National Treasury said it disbursed Ksh.30.8 billion to counties on Monday, setting all arrears it owed to the devolved governments.

The exchequer said as of Monday, it had paid out Ksh.158 billion to counties comprising June 2024 arrears, as well as disbursements for July, August, September and October.

Treasury Cabinet Secretary John Mbadi has previously attributed delays in the disbursement of county funds at the start of the current financial year to legal and administrative challenges.

The transfers to counties should ideally be done by the fifth of every month.

However, there has been a stalemate between the Senate and the National Assembly in the mediation committee formed to find a common ground on the Division of Revenue (Amendment) Bill.

The National Assembly's Budget and Appropriation Committee, earlier this month failed to reach an agreement, throwing counties into further uncertainty ass funds accruing to the devolved units had been delayed by at least two months.

At the centre of contention is Ksh.20 billion proposed for reduction by the National Treasury, backed by the National Assembly but rejected by the Senate, which says that once resources have been allocated to the counties, they cannot be taken back.