Gachagua reassures counties of fund disbursement amid Finance Bill withdrawal
Deputy President Rigathi Gachagua laughs during a past event. File photo
Deputy President Rigathi Gachagua announced on Monday that the government remains committed to disbursing all funds allocated to counties, despite the financial difficulties arising from the withdrawal of the Finance Bill, 2024.
Mr Gachagua made these remarks while presiding over the 24th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC) at his official residence in Karen, Nairobi.
He informed county leaders that all financial allocations for the previous fiscal year had been fully disbursed.
Additionally, he assured the IBEC that the National Treasury is actively working to clear the outstanding monthly allocations to counties, which have been involved in ongoing disputes with the Treasury over the release of funds crucial for service delivery.
"During the 2023/24 fiscal year, the National Treasury transferred Sh354.5 billion to counties by June 30, 2024, amounting to 92% of the total equitable share. The remaining Sh30.83 billion for June was released in July," Mr Gachagua explained.
He also urged governors to prioritise settling pending bills in their counties to stimulate economic growth.
The DP further noted that the National Treasury's pending bills, as of June 30, 2024, stood at Sh516 billion, a reduction from Sh622.82 billion the previous year.
A preliminary report covering 26 counties showed a significant decrease in county pending bills from Sh43.6 billion to Sh33.9 billion as of June 2024.
Treasury Cabinet Secretary John Mbadi disclosed that plans are underway to release revenue to counties for July and August by September 2024, following complaints from counties about inadequate funds to pay staff salaries.
The Deputy President also urged governors to collaborate with the Controller of Budget, Margaret Nyakang'o, to implement effective budgetary measures.
On President Ruto's directive for equitable revenue sharing from national parks, Mr Gachagua stated that progress is being made, with the Ministry of Tourism forming a technical team to develop a detailed roadmap for implementation.
The team has recommended that the Commission on Revenue Allocation (CRA) handle the matter, aligning with its constitutional mandate on revenue distribution.
The IBEC also resolved to adjust county budgets for the current financial year following the withdrawal of the 2024 Finance Bill to optimise available resources.
The council acknowledged that due to the exceptional circumstances of the 2024/25 fiscal year, counties would need to review the Division of Revenue Bill and revise their respective Finance Bills.
The Council of Governors requested permission to engage the Senate on these matters.
