The 26th Intergovernmental Budget and Economic Council (IBEC) on Monday resolved that the National Treasury clears pending December 2024 disbursements to counties in January 2025.
The meeting chaired by Deputy President Kithure Kindiki at the Official Residence in Karen further resolved that the National Treasury endeavours to disburse January and February allocations within February 2025 and monthly thereafter.
The National Treasury disbursed Sh32 billion to counties in mid-December last year, being the amount due for November 2024.
The announcement was made during the 25th Ordinary Session of IBEC which also took place in Kindiki’s Karen residence in December 2024.
The transfers to counties should ideally be done by the
fifth of every month.
During the meeting on Monday, IBEC further resolved that the Council of Governors and Controller of Budget establish a customer desk to receive and process on behalf of county governments, any emerging issues related to the approval process for the withdrawal of funds from the County Revenue Fund.
The County Revenue Fund receives all money raised or received on behalf of the county governments.
The meeting further resolved that the National Treasury reviews the budgets in line with the gazetted devolved functions to ensure that national government ministries, departments and agencies cease to hold funds for any devolved functions, and similarly fast-track implementation of resolutions of the 25th Ordinary session relating to court fines, mineral royalties, library functions and construction of county headquarters.
In December last year, President William Ruto ordered the
transfer of all pending budgets and functions that are still being held by the
national government to counties.
“This transfer will help improve governance, service delivery and intergovernmental cooperation,” Ruto told governors during the meeting in Nairobi.
In 2023, a report by the Intergovernmental Relations
Technical Committee (IGRTC) found that at least 10 county functions worth Sh272.2
billion that should have been devolved were still being held by the national government.