Deputy President Rigathi Gachagua has reassured governors that the government remains dedicated to disbursing funds allocated to counties, even in the face of ongoing financial difficulties.
Gachagua emphasized that funds for the previous fiscal year had been fully distributed, adding that the National Treasury is currently working to clear the remaining monthly allocations.
“By June 30, 2024, the National Treasury had transferred Sh354.5 billion to counties, covering 92 percent of the total equitable share for the 2023-24 financial year. The remaining Sh30.83 billion for June was disbursed in July,” Gachagua stated during the 24th Ordinary Session of the Intergovernmental Budget and Economic Council, held at his official residence in Karen, Nairobi.
Treasury Cabinet Secretary John Mbadi announced that plans are in place to release the revenue owed to counties for July and August by September 2024.
The meeting also concluded that adjustments to the current financial year’s budget would be necessary due to the withdrawal of the Finance Bill 2024.
“Given the unique circumstances of the 2024-25 fiscal year and the withdrawal of the Finance Bill, counties must adjust their Division of Revenue and Finance Bills accordingly. The Council of Governors has been granted permission to engage the Senate on this matter,” a statement from the Intergovernmental Budget and Economic Council (IBEC) read.
In addition, the Deputy President urged governors to prioritize the settlement of pending bills to help boost the economy. He encouraged county leaders to collaborate with the Controller of Budget to implement suggested solutions.
“As of June 30, 2024, the National Treasury reported Sh516 billion in pending bills for the National Government, down from Sh622.82 billion the previous year. A review of 26 counties showed a significant reduction in outstanding payments, from Sh43.6 billion to Sh33.9 billion,” Gachagua explained.
Addressing revenue-sharing concerns from national parks, Gachagua said progress is being made to resolve the matter swiftly, as directed by President William Ruto. The Ministry of Tourism has formed a technical team to develop a detailed implementation plan.
“This team has made significant proposals, including recommending that the Commission on Revenue Allocation handle the issue, as part of its constitutional duty to oversee revenue distribution,” Gachagua said.
He also called on counties to continue aiding the national government in the fight against drugs and illicit alcohol. He revealed that new legislation, the Alcoholic Drinks and Drugs Control Laws Bill, 2024, is in the works to strengthen regulations.
“The draft bill envisions national licensing for alcohol and drug control, with revenues benefiting counties and relevant agencies. We urge counties to collaborate with national authorities in setting up rehabilitation units in Level 3 to 5 hospitals to help those affected by illicit substances,” Gachagua concluded.