The Government through the National Treasury has disbursed additional Sh43.5 billion to County Governments to clear their pending bills.
In a press statement sent to newsrooms, The National Treasury and Planning (NTP) Cabinet Secretary (CS), Ukur Yatani, promised that the Ministry will release the May and June 2021 dues in the coming days.
“An additional Sh43.5 billion was released to County Governments on Tuesday 22nd June, 2021, thereby clearing dues up to April 2021,” stated CS Yatani.
The CS called on respective County Governments to prioritise the payment of pending bills owed to suppliers alongside their statutory dues.
“The payment of these pending bills will be closely monitored and future transfers weighed against the fulfilment of this important obligation to the private sector, so as to spur economic activity at the county level as part of our ongoing and inclusive Economic Recovery Programme,” the CS added:
Last week the Council of Governors (CoG) threatened to shut down operations by June 24, 2021 if the National Treasury failed to disburse Sh102.6 billion owed to them.
CoG Chairman Martin Wambora said that activities at the Counties had stalled because the Treasury was yet to disburse the said amount yet the end of the financial year was nearing.
“Unfortunately, if the National Treasury fails to release the funds, counties will not be able to offer basic services thereby forcing suspension of services or total shutdown by June 24,”Wambora had said.
Devolved Governments usually receive their equitable share on the 15th day of the month, with Sh25 billion to Sh26 billion credited to the collective County Revenue Fund account at the Central Bank of Kenya (CBK).