Counties to suffer for delaying budget approvals

Nairobi County Government Treasury Executive Charles Kerich when he arrived at the City hall to read the budget. [George Orido/Standard]

More than 25 counties are staring at a looming financial crisis after failing to pass their budgets on June 30.

This is due to contracted push and pull between assembly members and the executive. And this is set to hurt procurement timelines set under the Integrated Financial Management Information System (Ifmis).

With counties now expected to get their funds through the system, those that have not passed their budgets will face delays in payment of salaries, contractors and suppliers, a move that may lead to workers in different departments that offer essential services go on strike.

The Public Finance Management Act provides that the county assembly shall consider the county government budget estimates with a view of approving them, with or without amendments, in time for the relevant appropriation law and any other laws required to implement the budget to be passed by June 30 each year.

Gazette notice

In the race against time, some counties such as Isiolo, Mandera and Embu were forced to put up adverts in last Friday’s gazette notice to enable them hold special sittings to pass the documents in a rush.

Among the counties yet to approve their budgets include Mombasa, Kisumu, Homa Bay, Bomet, Machakos and Nakuru.

In Nyanza, counties were in a frenzy as MCAs competed against time to pass the 2018/2019 budget amid sharp divisions even as county executives engaged in an intense lobbying to have the assembly approve the document.

Speaker’s residence

In Kisumu, there was a stalemate as members of the Budget Committee disagreed over the inclusion of Sh300 million for Speaker’s official residence as well as plans to transfer some staff to a rented premises at a cost of Sh50 million.

Homa Bay Budget Committee chairman Nicholas Owaka said they are still scrutinising the Sh7.8 billion document.

The committee was expected to table a report on the Budget Appropriations Bill on Thursday but chairperson Steve Owiti withdrew the motion, saying that they were not ready.