The National Treasury has withheld Ksh15.8 billion worth in additional revenue after the devolved units allegedly failed to uphold the terms and conditions of funding about 12 projects.
A total of Ksh3.49 billion, Ksh2.39 billion, and Ksh3.89 billion of the funding are designated for the Kenya Climate Smart Agriculture Project, National Agriculture and Rural Inclusive Growth Project, and Water and Sanitation Development Project, respectively.
Others include Ksh2.8 billion for the Transforming Health Systems for Universal Care Project, Ksh789 million for the Agricultural Sector Development Support Programme II and Ksh798 million for the Kenya Informal Settlement Improvement Project (KISIP II).
Read: Treasury Allocates Ksh200M For William Ruto’s Inauguration
County governments criticized the Treasury in June for delaying the distribution of additional cash which led to stagnation of Important county development projects. With only one month left in the financial year, they were intended for, the Council of Governors highlighted that no county government had received any additional allocations. The Treasury also reported that it finished paying out the counties’ fair revenue share due for the fiscal year 2021–2022 last month.
This follows previous complaints from governors arguing that the treasury has been making skewed disbursements from the public coffers, where other departments in government get their shares in due time while counties do not, yet the money originates from the same coffers.
Read: Counties Decry Discrimination By Treasury In Funds Disbursement
According to the County Allocation of Revenue Act, they were supposed to get Khh370 billion by June but had only received Ksh340.4 billion 92% of that amount. The National Treasury confirmed that it had finished sending the funds to the counties by August 29, nonetheless. The dispute between counties and the treasury over the disbursement of funds has been a constant dispute since the inception of devolution in 2013.
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