DP Gachagua Holds Meeting With Governors at Karen Home, Promises Funds Disbursement
Deputy President Rigathi Gachagua announced on Monday that the government is committed to distributing all allocated funds to counties.
This is despite the nation’s current financial challenges as a result of the withdrawal of the Finance Bill 2024.
Gachagua spoke while chairing the 24th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC) at his official residence in Karen, Nairobi.
The Deputy President also informed the County Chiefs that all financial allocations for the previous fiscal year had been fully disbursed.
It is crucial to continue nurturing smooth working relations between the two levels of Government through frequent consultations to keep the wheels of Devolution rolling towards a better nation. pic.twitter.com/TaWfUaa5bl
— H.E. Rigathi Gachagua, EGH (@rigathi) August 26, 2024
At the same time, he informed the IBEC that the National Treasury was already working to clear the devolved units’ pending monthly allocations.
This comes after a constant push and pull with the Treasury regarding the submission of funds to enable efficient service delivery.
“During the last financial year (2023/24), The National Treasury transferred Ksh 354.5 billion to counties by June 30, 2024, an equivalent of 92% of the total equitable share due to counties,” noted the DP.
“The outstanding amount of Sh30.83 billion for June was released in July.”
The Deputy President also urged governors to work harder to clear pending bills in their respective counties in order to help the country’s economy grow.
“The National Treasury indicates that as of June 30, 2024, outstanding National Government pending bills stands at Sh516 billion, a decrease from Sh622.82 billion as of June 30, 2023,” he added.
“Initial comparative reports for 26 counties show a significant reduction from 43.6 Billion Shillings to 33.9 Billion Shillings as of June 2024.”
The IBEC Sessions allow the National Government, the County Governments and Constitutional Commissions and Independent Offices to have in-depth discussions and interrogation of fiscal policy and other governance matters. pic.twitter.com/9GZ77G4rqy
— H.E. Rigathi Gachagua, EGH (@rigathi) August 26, 2024
National Treasury Cabinet Secretary John Mbadi also revealed that plans are underway to release revenue to the counties for the months of July and August by September 2024.
This came as the counties complained about a lack of funding to cover staff salaries.
Gachagua also asked the governors to collaborate closely with the Controller of Budget, Margaret Nyakang’o, on implementing recommended measures to effectively address issues through budgetary processes.
In response to President Ruto’s directive for equal revenue sharing from national parks, the DP revealed that progress is being made to address the issue as soon as possible.
He also stated that the Ministry of Tourism had formed a technical team of relevant stakeholders to create a comprehensive implementation roadmap for the directive.
“The team has made significant recommendations, including proposing that the matter be handled by the CRA, in line with its Constitutional mandate on revenue distribution,” he stated.
The IBEC resolved that necessary adjustments will be made to budgets for the current fiscal year following the withdrawal of the Finance Bill 2024 in order to consolidate available resources.
“It was noted that with the exceptional circumstances of FY 2024/25, and the withdrawal of the Finance Bill 2024/25, there was a need for counties to appreciate the need for a variation of the Division of Revenue Bill and restructure their respective Finance Bills accordingly,” the Council said in a statement.
“The Council of Governors requested that they be allowed to engage the Senate on the matter.”
DP Gachagua Holds Meeting With Governors at Karen Home, Promises Funds Disbursement
