Governors warn of shutdown over cash crunch

Kakamega Governor Fernandes Barasa flagging off county ambulances to 12 Sub-counties at Kakamega referral hospital on August 5, 2024. [Benjamin Sakwa, Standard]

A crisis is looming in counties over the delayed disbursement of the Sh90 billion equitable shareable revenue with governors warning of dire consequences that critical operations will be soon paralysed.

This comes amid threats by the county workers' union that they will down tools if the county governments fail to meet their demands of offsetting some of the salary arrears because of persistent cash crunch.

The Council of Governors (CoG) through the Finance and Economic Planning Committee said counties are yet to receive the arrears for July, August, and September with governors stating that many residents risk exclusion from critical services such as health, education, and agriculture besides salary arrears for county workers.

Tougher times

Committee Chairperson Governor Fernandes Barasa said the delayed disbursement of funds threatens to grind to a halt critical operations.

"We are in the third month of the financial year but have not received equitable shareable revenue since June. We have programs that we are running and without release of funds, operations are already paralyzed," said Barasa.

Speaking when he graced the official pass-out parade for 200 county Marshall at Kakamega ASK Showground, he said residents should brace for tougher times ahead.

The county boss added that the delayed funding has also derailed the completion of ongoing projects which have a ripple effect on service delivery and piling of pending bills.

"Without the release of the equitable shareable which is a constitutional requirement, the operations in counties are going to be paralyzed completely," he said.

He clarified that in the absence of the County Allocation of Revenue (CARA) Act 2024, the DORA Act provides for releasing 50 per cent of the monies to the counties for the first six months.