- Last week, the Treasury released the cash – carry over from the last fiscal year – meant for June.
- The Treasury had failed to release the funds before the end of the last financial year, citing cash flow challenges.
Image: LEAH MUKANGAI
County governments cannot access more than Sh30 billion wired to their bank accounts, despite most of them running broke and unable to pay salaries.
It has emerged that the National Treasury sent the funds last week, but the devolved units cannot access the funds due to their "own making".
The counties, the Star has established, have not submitted their budgets for 2024-25 to the office of the Controller of Budget for approval.
They were expected to submit the budgets by April for scrutiny and approval by Controller of Budget Margaret Nyakang’o.
“The Treasury released Sh30 billion to the counties last week. The counties themselves also channel their own source revenues to the revenue fund accounts as required by law,” Nyakang’o said.
She added, “For them to access the funds, they must requisition through my office. And for that to happen, their budgets must be approved.”
Documents obtained by the Star show three counties have been cleared to access the funds in their accounts.
They are Taita Taveta, Kiambu and Marsabit.
Some 22 counties have not submitted their budgets at all, while others have submitted pending approval.
Among the counties yet to submit are Busia, Elgeyo Marakwet, Embu, Isiolo, Kilifi, Kirinyaga, Kisii, Kisumu, Kwale, Laikipia and Machakos.
Others are Mandera, Meru, Kakamega, Nyamira, Wajir, Uasin Gishu, Trans Nzoia, Tana River, Samburu, Mombasa and Murang’a.
“We don’t know why they are sending their budgets to us but it has always had something to do with the bad blood between the Executive and the Assembly,” Nyakang’o told the Star.
“County Assemblies have always lamented that there is nothing for them in the budgets. That is where the problem has been. But it is hurting counties,” she stated.
The revelations imply that 44 counties have not withdrawn a penny from their accounts, crippling them financially.
“I don’t know how they will pay their July salaries because they cannot requisition without budgets. But maybe some of them have arrangements with financial institutions,” Nyakang’o said.
Governors have often complained about the delayed release of funds by the Treasury, which has affected critical operations including payment of salaries and delivery of services.
Last week, Treasury released the cash – carry over from the last fiscal year – meant for June.
Treasury had failed to release the funds before the end of the last financial year, citing cash flow challenges.
Subsequently, the funds have been factored into the current year's budget and sent to the devolved units as funds carried over.
Article 228 of The Constitution of Kenya shows the core mandate being to oversee implementation of the budgets of the National and County Governments by authorising withdrawal from public funds.
The devolved units were allocated Sh380 billion, up from Sh385 billion last year, in the revised budget.