Alarm as Vihiga county debts accrue to Sh1.2 billion

Vihiga County government's debts will accrue to Sh1.232 billion against a budget of Sh4.5 billion for the financial year 2015/2016.

This is after the County Assembly approved the county government's proposal to borrow a bank overdraft of Sh200 million from the Kenya Commercial Bank (KCB).

The Commission for Revenue Allocation (CRA) has allocated the county Sh3.8 billion this financial year with the county having had debts of more than Sh1 billion in the last financial year and its local revenue having sunk from Sh300 million to Sh80 million annually.

The approval of the loan facility would now salvage the already grounded county operations and enable the its administration pay a total of Sh100 million July salaries amid delayed disbursements.

Debate on the proposal was marred with chaotic scenes from the two factions with one supporting and the other opposing.