The National Treasury on Monday said it has disbursed Sh30.8 billion to counties, clearing all arrears to devolved units except for the month of November.
The announcement came hot on the heels of a warning by the Council of Governors (CoG) that the delay in disbursement of funds to devolved units could disrupt service delivery and cripple operations in counties across the country.
The exchequer said, it had paid out Sh158 billion to counties comprising June 2024 arrears, as well as disbursements for July, August, September and October.
“As of October 18, 2024, the National Treasury has fully disbursed funds to county governments, up to date with all payments except for the current month of November,” National Treasury announced.
The transfers to counties should ideally be done by the fifth of every month.
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.
Treasury Cabinet Secretary John Mbadi previously attributed delays in the disbursement of county funds at the start of the current financial year to legal and administrative challenges.
There has been a stalemate between the Senate and the National Assembly in the mediation committee formed to find a common ground on the Division of Revenue (Amendment) Bill.
The National Assembly's Budget and Appropriation Committee, early November failed to reach an agreement, throwing counties into further uncertainty.
At the centre of contention is Sh20 billion proposed for reduction by the National Treasury, backed by the National Assembly but rejected by the Senate, which says that once resources have been allocated to the counties, they cannot be taken back.
The Senate has rejected a bid by the Treasury to give the devolved units Sh380 billion.
