DP Gachagua says over Ksh.30B lying idle in accounts of county governments

Counties with low absorption rates of funds risk missing out on disbursements by the national government.

Deputy President Rigathi Gachagua says over Ksh.30 billion is lying idle in the accounts of several county governments amidst complaints by the county governors over delayed disbursement of funds.

Speaking during the 18th session of the Intergovernmental Budget and Economy Council (IBEC) meeting, Gachagua said that counties should put in place efforts to ensure the entire allocation is spent to positively contribute towards the county’s development and service delivery.

“The national government has noted the concerns of county governments, through the Governors, of delayed disbursements, and efforts will be made by the National Treasury subject to improved collection of revenue to try as much as possible to disburse funds to counties in good time,” said gachagua.

The National Treasury is yet to release Ksh.51. 7 billion owed to counties; out of which Ksh.20.31 billion is owed to 27 counties for the month of August 2022, and Ksh.31.45 billion is owed to all the 47 counties for the month of September 2022.

The calls for timely disbursement of funds were however met with concerns over idle billions lying in county coffers with the deputy president noting that disbursement will be pegged on the efficiency of individual counties on utilizing public resources.

“Even as county governments complain about delayed disbursements, they continue to hold over Ksh.30 billion in their accounts, and we have agreed going forward that disbursements will be informed by quick absorption of funds,” stated the DP.

This obligation, Migori Governor Ochillo Ayacko says, is impractical, adding that the counties’ expenditure is limited in this transition phase.

“What the law requires is that for you to expend money in a new financial year, you need to carry forward what was left - including the surpluses and the obligations - into the current financial year, through a supplementary budget. Most county assemblies have just started their work, they have appointed their budget and finance committees, and are yet they’re embarking on supplementaries,” said Ayacko.

His Kakamega counterpart Fernandes Barasa said: “We as new governors, the challenge in absorption especially on the pending bills has been the audits, and most of the Governors are now going through the audit of pending bills. We have been given guidelines and once the pending bills are audited, then the funds will be disbursed.”

DP Gachagua also announced that they the resolved to finalise the transfer of all devolved functions to counties.

“We have given ourselves a deadline of six months, within which all functions should be transferred and shortly we will be convening a meeting with all the relevant ministries to agree on the roadmap towards the final transfer of all devolved functions of the county governments,” he said.