Governors Criticize Budget Controller Over Fund Delays, Sh7 Billion Owed

The Council of Governors (CoG) has criticized the Controller of Budget, Margaret Nyakang’o, for delays in approving county fund withdrawals.

This comes as the National Treasury has yet to release Sh63.6 billion for the October and November 2024 county allocations.

CoG Chairman Ahmed Abdullahi expressed his dissatisfaction, stating that it is unacceptable for an institution meant to facilitate the process to cause delays.

“We call upon the Controller of Budget to stop being a bottleneck and ensure counties access their funds in a timely manner,” he said.

Abdullahi also praised the Senate for retaining the county allocation at Kshs. 400.117 billion through the Division of Revenue (Amendment) Bill 2024.

However, more than five months into the 2024/25 financial year, the County Allocation of Revenue Act has yet to be assented to, despite the Bill being passed by both houses of Parliament. As a result, county governments are still waiting for their equitable allocation for the current financial year.

Meanwhile, the National Government continues to receive its shareable revenue, as the National Assembly passed the Supplementary Appropriations Act 2024.

Abdullahi expressed concern over the National Assembly’s decision to reduce the County Equitable Share by Kshs. 20 billion, warning that such cuts would negatively impact service delivery and halt county operations.

“Any reduction to the County Equitable Share will grind the counties to a halt, especially since the Kshs. 400.117 billion allocation is based on historical audited accounts,” he stated.

He further highlighted the urgency of the situation, noting that with the National Treasury yet to disburse Sh63.6 billion for the October and November allocations, counties could face funding shortages by December 2024, when 50% of the allocation will have been exhausted. This would leave counties without any further disbursements starting January 2025.