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Why 13 counties won’t access funds just yet despite Treasury releasing billions

They are Baringo, Busia, Embu, Homa Bay, Isiolo, Kajiado, Kisii and Mandera

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by JULIUS OTIENO

News04 August 2023 - 04:00
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In Summary


  • Some 13 county governments will not access funds just yet despite the National Treasury releasing millions to their respective bank accounts.
  • It has emerged that the devolved units are yet to submit their budget documents to the office of the Controller of Budget for approval.
Controller of Budget Margaret Nyakang'o speaks when she appeared before Senate county public investments and special funds committee in parliament on February 22, 2023

Some 13 county governments will not access funds just yet despite the National Treasury releasing millions to their respective bank accounts.

It has emerged that the devolved units are yet to submit their budget documents to the office of the Controller of Budget for approval.

Upon approval, the budgets are supposed to be uploaded onto automated integrated financial management information system (Ifmis) to enable them access the funds.

They are Baringo, Busia, Embu, Homa Bay, Isiolo, Kajiado, Kisii, Mandera, Marsabit and Nairobi counties.

Governor James Orengo’s Saiya and Dhadho Godhana’s Tana River governments cannot also access the funds despite the funds lying idle in their respective revenue accounts at the Central Bank.

Yesterday COB Margaret Nyakangó said the devolved units are yet to remit to her office budget documents for approval.

“We had asked them to provide us with among others approved budgets, county integrated development programme, annual development plans and debt management strategy among other documents,” Nyakang’o said.

Last week, the National Treasury released some Sh32.76 billion to the County Revenue Accounts (CRFs) of the respective county governments for the month of July.

This was the first time the Treasury released county funds on time. Previously, the devolved units have waited for months to receive the funds.

“Setting a precedent, President William Ruto released the July 2023, shareable revenue for counties on Thursday, July 27, which is four days ahead of the end of the month,” State House spokesman Hussein Mohamed said last week.

“This is why it is unprecedented. After nine years, the National Treasury successfully complied with the law by releasing all the funds owed to the county governments as legally required,” he added.

According to the documents obtained by the Star, budgets for Baringo, Kajiado, Mandera, Marsabit are still pending approval at their county assemblies.

Busia, Homa Bay, Isiolo, Nyamira, Siaya and Tana River have not submitted their documents to the office of the COB.

Nairobi county only submitted a copy of approved budget estimates with other accompanying documents.

Nyakang’o said besides the documents, her office also analyse the budgets to ensure they comply with the provision of Public Finance Management (PFM) Act.

“We analyse the budgets to ensure they meet 30 per cent requirement for development. We check their compliance to the wage bill,” she said.

Some Sh565.06 million was disbursed to Baringo, Busia received Sh635.42 million, Embu got Sh454.05 million while Homa Bay received Sh690.91 million.

The Treasury released Sh416.41 million to Isiolo, Sh705.51 million to Kajiado, Sh786.98 million to Kisii, Sh988.82 million to Mandera and Sh642.63 million to Marsabit.

Nairobi, Siaya and Tana River received Sh1.70 billion, 617.35 million and Sh577.20 million respectively.

Article 228 of the constitution provides that the Controller of Budget shall oversee the implementation of the budgets of the National and County governments by authorising withdrawals from public funds.

The controller shall not approve any withdrawal from a public fund unless satisfied that the withdrawal is authorised by law, it adds.

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