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Treasury advances counties Sh20bn for workers’ salaries

by 19/10/2017 17:59:00 0 comments 1 Views
By GERALD ANDAE
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Cash problems have made the Treasury to advance some county governments Sh20.3 billion in the three months to September for workers’ salaries after the Senate failed to agree with a money allocation law approved by the President.

Treasury CS Henry Rotich Thursday said he did not give counties money because the schedule in the County Allocation of Revenue Act 2017 assented to by President Uhuru Kenyatta differed from the one approved by the Senate.

The minister said he was waiting for clarification from the Senate before disbursing the money, meaning county governments will wait longer for their allocation.

According to the latest Kenya Gazette notice, no county received allocations from the government’s main account in the first quarter that ended in September.

Instead, the counties were loaned Sh20.3 billion by the Treasury. The amount is less than a third of the Sh75 billion the counties expected.

STALLED PROJECTS

This has stalled projects, delayed workers’ pay and frozen payment to suppliers.

In Nairobi, City Hall said it was unable to pay September salaries.

Counties received a Sh2.4 billion advance from the Treasury in September, which is less than 10 per cent of their monthly cash requirements — highlighting struggles the devolved units are going through to meet their obligations.

“The schedule of disbursement approved by the Senate was in variance with the  County Allocation of Revenue Act 2017. The National Treasury is awaiting clarification from the Senate,” said Mr Rotich.

PAY SALARIES

“In the meantime, Treasury advanced Sh20,434,075,558 to some county governments to enable them pay salaries and provide essential services.”

The Act specifies what every devolved unit gets, based on a revenue-sharing formula approved by Parliament.

Total allocation to the counties in the current financial year stands at Sh329.96 billion, which consists of the equitable share of national government revenue of Sh306.2 billion and conditional grants of Sh23.3 billion from the State and development partners.

The law requires the National Treasury to disburse counties’ share of revenue by the 15th of every month.

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