Acting Cabinet Secretary for National Treasury and Planning Ukur Yatani has issued a new directive that will halt disbursement of funds to county governments until pending bills are cleared.
In a move to ensure accountability, county governments will be required to provide monthly status reports that will include itemized lists of all the bills paid.
Yatani has commended thirteen counties that have cleared their eligible pending bills as at June 2018 and have been verified and confirmed by the office of the Attorney General.
These county governments include: Elgeyo Marakwet, Homa Bay, Kajiado, Kericho, Kilifi, Kwale, Laikipia, Makueni, Nyamira Nyandarua, Nyeri Uasin Gishu and Baringo.
He, however, wondered why the remaining counties have not paid pending debts despite the full release of funds to the devolved units.
READ MORE
How power play in counties kills what devolved system promises
Uproar over new administrative units as MP takes State to court
Homa Bay residents oppose new sub-county
KRA collection crosses a trillion mark a week earlier compared to 2023
He said that going forward money will only be released to counties that have cleared paying pending bills.
“In light of the fact that the National Treasury has consistently released the full allocations of the equitable share of revenue due to county government since the role out of the devolved system of government, there is no reason for non-payment of eligible pending bills,” he said.
“In this regard, therefore all counties with outstanding eligible bills due to suppliers and contractors as at June 2018 and as verified and confirmed by the Auditor General are required to clear the said outstanding bills forthwith.”
The statement comes amid a back and forth between the counties heads and the Treasury boss who insists that the National Treasury has consistently released the full allocations of the equitable share of revenue due to county government since the role out of the devolved system of government and that there is no reason for non-payment of eligible pending bills.
According to the Public Finance Management Act, 2012, the National Treasury should disburse funds to counties at the beginning of every month, but not later than the 15th day from the start of the quarter.
In his directive the CS ascertains that the National Treasury has sufficient resources to cover the transfers due to county governments for November and December 2019 but until all counties with outstanding eligible bills due to suppliers and contractors as at June 2018 are cleared, verified and confirmed by the Auditor General, disbursements will continue stalling.
