NAIROBI, Kenya, Nov 18 – The Council of Governors (COG) has warned that the delay in disbursement of funds to devolved units could disrupt service delivery and cripple operations in counties across the country.
COG in a statement following its extraordinary meeting lamented that the delay in the passage of the County Allocation of Revenue Act (CARA) and the ongoing financial uncertainty are putting immense pressure on county governments, which have yet to receive their equitable share for the 2024/25 financial year.
According to COG chairperson Ahmed Abdullahi, counties are currently operating on a stopgap measure that provides them with 50% of the equitable share based on last year’s allocation.
However, this interim arrangement is set to run out by December 2024, leaving counties at risk of a complete financial shortfall in January 2025.
“The National Treasury is yet to disburse Kshs.63.6 Billion for October and November 2024 allocations. However, by December 2024, the 50% will have been exhausted which means Counties will not receive any disbursement from January 2025,” said Abdullahi.
“We note with great concern the delays by the Controller of Budget to approve requisitions for the withdrawal of funds.”
Similarly, the county chiefsexpressed deep concern over the National Assembly’s reduction and the ongoing delays in the passage of the County Allocation of Revenue Bill, which has yet to be assented to despite being passed by Parliament five months ago.
Earlier, Members of the National Assembly and senators locked horns over the equitable revenue share to devolved units.
MPs voted for the counties to receive an allocation of Sh380 billion as proposed by the National Treasury with the latter citing fiscal deficit challenges following the withdrawal of the Finance Bill 2024, a revenue raising bill.
The standoff which is in mediation threatens to delay the passage of the revised Division of Revenue Bill 2024, which splits nationally generated funds between the national and county governments.
Source: capitalfm
