Treasury Dismisses County Arrears Claims, Says Latest Payment Of Sh30.8 Billion Disbursed

The National Treasury has denied allegations by the Council of Governors (CoG) that it owes counties Sh63.6 billion for October and November 2024.

According to documents seen by Kahawa Tungu, the Treasury disbursed Sh30.8 billion on November 18, 2024, which is currently being processed.

The records detail payments made to counties, including a Sh32.8 billion allocation disbursed on November 14 to cover September.

Earlier payments for June, July, and August were made on July 26, September 24, and October 17, amounting to Sh30.8 billion, Sh32.8 billion, and Sh30.8 billion, respectively.

In total, counties have received Sh158 billion for the current financial year, according to the Treasury.

CoG Criticizes Delays

Despite the Treasury’s report, CoG Chair Ahmed Abdullahi criticized the Controller of Budget, Margaret Nyakang’o, for delays in approving county fund withdrawals.

Also Read: Governors Criticize Budget Controller Over Fund Delays, Sh7 Billion Owed

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

The CoG also acknowledged the Senate’s decision to retain the county allocation at Sh400.117 billion through the Division of Revenue (Amendment) Bill 2024. However, Abdullahi decried the delays in enacting the County Allocation of Revenue Act, which has left counties waiting for their equitable share five months into the 2024/25 financial year.

Abdullahi expressed concern over the National Assembly’s move to cut the County Equitable Share by Sh20 billion, warning of dire consequences for county operations and service delivery.

“Any reduction to the County Equitable Share will grind counties to a halt, especially since the Sh400.117 billion allocation is based on historical audited accounts,” he said.

He further warned that if the National Treasury does not release the Sh63.6 billion allocation for October and November, counties could face a funding crisis by December 2024. This would leave counties without funds from January 2025, when half the annual allocation will have already been spent.

Meanwhile, Abdullahi urged the government to expedite funding processes to avoid disruption to critical county functions and ensure service delivery to citizens.