Deputy President Rigathi Gachagua has asked governors to clear pending bills at the counties for the private sector to thrive.
Speaking when he addressed the 21st Ordinary Session of the Intergovernmental Budget Economic Council in Nairobi, Gachagua said bills are slowing economic growth for the upcoming investors.
"Some counties are still holding a lot of money, yet there are pending bills. The bills should be settled in the first-in first-out structure," Gachagua said.
The Controller of Budget recently said pending bills increased by Sh11.74 billion to reach Sh164.76 as of June 2023.
This has thrown suppliers into financial crises due to financial challenges with some facing auctions and shutdowns.
The law requires that money not spent within the required period is returned to the National Treasury.
The matter formed part of the discussion of the Session and the meeting adopting a resolution.
"It is noted that some counties did not follow the first-in first-out basis criteria. The council has decided that a meeting be convened involving the Controller of Budget, Council of Governors and the National Treasury to address and resolve the persistent issue of the pending bills," the resolution presented by Gachagua read in a part .
The DP called on the counties to pay salaries on time for smooth service delivery.
"Delayed salaries should be a thing of the past. You need to establish structures for paying salaries on time. The National Government is ready to support you on this matter," he said.
The Deputy President asked the counties to adopt technology to meet their own source of revenue targets.
The meeting noted that most counties have consistently failed to meet revenue collection targets since the advent of devolution.
Gachagua also asked counties to manage the wage bill below 35 per cent of the budget adding that it is one of the ways of saving for development.
The Deputy President assured governors that the national government is committed to working with them in the realisation of their mandate for the public good.
"I wish to thank the counties for creating a good working relationship with the national government. The National Government Administration Officers at the counties have irrevocable instructions to work with the counties for better service. A stable devolution is good for our country," the DP added.
One of the areas he pointed out is the distribution of subsidised fertiliser and registration of farmers.
