Deputy President Rigathi Gachagua has assured governors that the government is committed to hastening disbursement of allocated funds to counties despite the prevailing financial challenges.
The Deputy President said allocations for the last financial year had been fully disbursed, revealing that the National Treasury is working on clearing the pending monthly allocations.
“During the last financial year (2023/24), The National Treasury transferred Ksh 354.5 billion to counties by June 30, 2024, an equivalent of 92pc of the total equitable share due to counties. The outstanding amount of Ksh 30.83 billion for June was released in July,” said the DP.
The Deputy President spoke on Monday when he chaired the 24th Ordinary Session of the Intergovernmental Budget and Economic Council at the Official Residence in Karen, Nairobi.
In this regard, Cabinet Secretary for The National Treasury John Mbadi said that plans are underway for the release of revenue to the counties covering July and August by September, 2024.
During the meeting, it was also resolved that adjustments are made to budgets of this financial year following the withdrawal of the Finance Bill 2024.
“It was noted that with the exceptional circumstances of FY 2024/25, and the withdrawal of the Finance Bill 2024/25, there was a need for counties to appreciate the need for a variation of the Division of Revenue Bill and restructure their respective Finance Bills accordingly. The Council of governors requested that they be allowed to engage the Senate on the matter,” the Council said in a statement.
At the same time, the Deputy President appealed to the governors to put more effort to clear the pending bills to rejuvenate the economy. He urged them to work with the Controller of Budget to implement recommended measures to effectively address matters through the budgetary processes.
“The National Treasury indicates that as of June 30, 2024, outstanding National Government pending bills stands at Sh516 billion, a decrease from Sh622.82 billion as of June 30, 2023. Initial comparative reports for 26 counties show a significant reduction from 43.6 Billion Shillings to 33.9 Billion Shillings as of June 2024,” he said.
On the equal sharing of revenue from national parks, Mr Gachagua said progress is being made to address the issue quickly as directed by President William Ruto.
The DP said the Ministry of Tourism has established a technical team of relevant stakeholders to develop a comprehensive implementation roadmap.
“The team has made significant recommendations, including proposing that the matter be handled by the CRA, in line with its Constitutional mandate on revenue distribution,” he stated.
The DP also urged the county governments to continue supporting the fight against drugs and illicit drinks saying a law was being drafted to firm up response to the vices.
“The draft Alcoholic Drinks and Drugs Control Laws Bill, 2024, envisions national-level licensing for alcoholic drinks and drugs, with revenue going to Counties, and the relevant agencies.
We continue to urge the counties to work with other National Government agencies in establishing rehabilitation units in level 3 to 5 hospitals to assist those affected by illicit alcohol and drug abuse,” he said.
