Counties Fail to Use Ksh85 Billion of Allocated Funds

A report showing how funds allocated to counties have been spent shows that out of the 314 billion shillings allocated, 85.6 billion shillings remained unused.

The report by the National Treasury has shown that by the end of financial year 2018/2019, all the 47 counties had only spent 228.4 billion shillings.

About 51.6 billion shillings was in the counties’ devolved units accounts while the treasury held 34 billion shillings as the counties were slow at absorbing the cash.

According to the report, Nakuru county had the largest balance of 3.9 billion shillings as Nairobi county came second with a 3.5-billion-shilling balance.

Kwale, Kilifi, Turkana, Machakos, Bungoma, Nyandarua, Baringo and Siaya were some of the counties which recorded a balance of more than a billion.

Mombasa, Tharaka Nithi and Taita Taveta counties recorded low balances of less than 100 million shillings.

The report comes after a stalemate between the National Assembly and the Senate over revenue allocation to counties where senate wanted the national treasury to increase the amount of money given to counties to 335 billion shillings instead of 316.5 billion proposed by the National Assembly.

The disagreement between the two houses recently caused activities in most counties to come to a standstill as county workers went on strike because they had not been paid.

READ ALSO: The Big 4 Agenda Will Easily Be Realized If Counties Got More Funds and Have Fiscal Discipline 

The National Treasury report has raised concerns among members of the national assembly as they wondered why governors would want more money when they have not fully absorbed that which was allocated.

Leader of Minority John Mbadi said that senators should ensure that before they ask for more money for the devolved units, counties should be able to utilize what they already have.

“It would be inconsequential if the counties are given the 335 billion they want, yet reports show that they have spent way less than what they were given,” he said.

To Senate’s defense, Nairobi senator Johnson Sakaja and Council of Governors (CoG) chairman Wycliff Oparanya said that the balances are as a result of delays by the treasury to release the funds to the counties.

They also said that the Integrated Financial Management Information System (Ifmis) contributed to the slow absorption as it becomes slow immediately it is logged into.

“Counties received their final installments on the last day of June. It is impossible for the money to be spent when it is disbursed on the last day of a financial year,” said Governor Oparanya.

“Even the National government ministries do not have 100 percent absorption rate. Why can’t the national assembly apply the same standards towards them,” said Senator Sakaja.

Governor Oparanya said that despite the less than 100 percent absorption of funds, the counties will still need more money. He asked the treasury to release some money to counties even as mediation talks on the stalemate continues.

READ ALSO: County Governments to Start Borrowing Funds from Capital Markets