Eight counties headed for hard times as strike delays allocations

Nairobi County assembly in session. Eight counties may wait longer for funding from the Treasury after their assemblies went on strike two months ago without approving the budgets. Photo/Diana Ngila 

By EDWIN MUTAI

In Summary

• Controller of Budget Agnes Odhiambo told the National Assembly Budget and Appropriations Committee that nine other counties were still revising their expenditures.
• The 39 counties were forced to revise their budgets after huge allocations on personnel benefits like car loans and mortgages led to unsustainable deficits because of a weak revenue base.
• Ms Odhiambo said governors of the affected counties were using the partial payments on staff salaries and recurrent needs.

Eight counties may wait longer for funding from the Treasury after their assemblies went on strike two months ago without approving the budgets.

Controller of Budget Agnes Odhiambo told the National Assembly Budget and Appropriations Committee that nine other counties were still revising their expenditures.

“As of this morning (Tuesday), 21 out of the 39 counties have complied with the requirements and have submitted their budgets to us. There were eight counties that had balanced budgets which we approved in July,” Ms Odhiambo told legislators.

Bomet county was closer to complying after the assembly passed the supplementary appropriation Bill that was waiting for assent by the Governor, Isaac Ruto, to become law.

READ: 22 counties risk missing out on cash

The 39 counties were forced to revise their budgets after huge allocations on personnel benefits like car loans and mortgages led to unsustainable deficits because of a weak revenue base.

The 39 counties have, however, been receiving half of their allocations until they balance the budgets.

Kitui, Tana River, Nandi, Nyeri, Nairobi, Kirinyaga, Kakamega and Kericho are the only counties that met the requirement from the start.

Kiambu, Tharaka Nithi, Marsabit, Lamu, Busia, Kwale and Taita Taveta are yet to take their budgets to the county assemblies.

Mwingi, Mombasa, Nyandarua, Embu, Isiolo, Bungoma, Garissa and Uasin Gishu have revised their budgets which are yet to be approved by the assemblies.

Those that have revised their budgets and passed Supplementary Appropriation Bill are Turkana, Nyamira, Mandera, West Pokot, Trans Nzoia, Nakuru, Meru, Homa Bay, Kisii, Migori, Elgeyo Marakwet, Baringo, Wajir, Kilifi, Machakos, Kisumu, Laikipia, Narok, Kajiado, Vihiga and Makueni.

“We are now approving full monthly disbursements for the 30 or so counties that have complied,” she said.

Ms Odhiambo said governors of the affected counties were using the partial payments on staff salaries and recurrent needs.

ALSO READ: MPs seek to tame huge wage bill in counties

She also asked MPs to initiate amendments to the County Allocation of Revenue Bill to allow counties to draw money from the Treasury on a quarterly basis. The money is disbursed on a monthly basis making it difficult to pay contracts on longer payment cycles.