Treasury ordered to release County Funds

A Nairobi High Court has ordered the Finance CS Ukur Yattani to release funds that the treasury had retained from 35 counties. 

This order came after the council of governors sued the treasury claiming that the retaining of funds had stalled provision of services in their cash-strapped counties. 

The treasury had delayed these funds on the basis that they could not release the funds as the office of Controller of budget was vacant. The role of the controller of budget is to approve the release of money from the government’s main account and the Consolidated Fund to ministries, counties and other state agencies.

On December 4, 2019 Margaret Nyanga’ate Nyakang’o was appointed as the controller of budget. However, the more things change the more they stay the same, even with this appointment, the council of governors still claimed that they were yet to receive any funds pursuant to the appointment.

The Council of Governors further stated that many suppliers had blacklisted county governments tenders due to continued delayed payments.

The CoG chair and Kakamega Governor Wycliffe Oparanya announced that they had petitioned the High Court to compel the National Treasury to disburse funds to counties regularly on a monthly basis. He called on the National Government to adhere to the Public Finance Management Act which stipulates that monies to the counties should be disbursed by the 15th day of the month.

“We have been able to pay salaries from the local revenue and I am appealing to all the legible taxpayers to pay taxes so as to enable us to offer the services in return,” he added. 

Hon Wycliffe Oparanya further added that the delays from the reasury had prompted his administration to intensify local revenue collection which has assumed an upward trajectory in the past four months.

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