The Council of Governors has given the National Government 9 days to disburse money owed to counties.
The Council of Governors Chairperson and Kirinyaga Governor Anne Waiguru has asked the Kenya Kwanza government to release the money to enable operations in the devolved units.
As of now, Waiguru disclosed that counties are struggling to pay salaries and foot other bills that enable the smooth running of the devolved units.
"The council calls for the immediate release of an equitable share of revenue owed to county governments for the months of May and June 2024 amounting to Ksh64 billion. This is to ensure uninterrupted service delivery at the county. As it is, many counties are struggling to pay salaries," Waiguru stated.
Tharaka Nithi Governor Muthomi Njuki, who is also the health committee chairperson, explained that counties were crippled with lack of funds, saying the national government only released funds for April this week.
Njuki stated that the national government had placed the county bosses in a tough balancing act as they decided whether to pay debts, fund recurring budgets or continue sinking in the den of pending bills.
"The government owes us money for over two months. For every county, two months' disbursement is equivalent to maybe two or three months' salaries. Recently we were on the spot for not paying KEMSA debts. It will not be possible to settle the debts unless we get a full disbursement because we have a hard choice of paying salaries and KEMSA debts disbursement of up to June will enable us to make the payments," Njuki said.
Waiguru also stated that the Council of Governors rejected in totality the plan by the National Treasury to reduce the county's equitable share by Ksh5 billion.
The Kirinyaga governor clarified that the National Treasury must be guided by the provisions of the Division of Revenue Act to avoid conflicts with the county bosses.
"We note with concern that the national treasury wants to reduce the county equitable share by Ksh5 billion from the Ksh400 billion allocated in the division of revenue after a mediated process. This unilateral decision not only undermines the spirit of devolution but also jeopardizes the essential services to be delivered to millions of Kenyans."
"It is important that the national treasury is guided by the provisions of section 5 (1) of the Division of Revenue Act 2024. The Council of Governors rejects this proposal in totality and demands that the national treasury retain the county's equitable share as enumerated in the Division of Revenue Act 2024 after the mediated process," the CoG chairperson stated.
The cry from devolved units came when the government was struggling to pass a Finance Bill that intended to increase the tax base and help the government raise more money.
