The National Treasury announced on Monday that it has disbursed Sh30.8 billion to counties, clearing all arrears owed to devolved units except for November.
The statement followed a warning from the Council of Governors (CoG), which cautioned that delays in the disbursement of funds could disrupt service delivery and cripple county operations nationwide.
The Treasury revealed it had paid out Sh158 billion to counties, covering arrears for June 2024 and disbursements for July, August, September, and October.
“As of October 18, 2024, the National Treasury has fully disbursed funds to county governments, clearing all pending payments except for the current month of November,” the statement read.
Ideally, transfers to counties should be completed by the fifth of each month.
In response, the CoG lamented that delays in passing the County Allocation of Revenue Act (CARA) and ongoing financial uncertainties have placed immense pressure on county governments, which are yet to receive their equitable share for the 2024/25 financial year.
Treasury Cabinet Secretary John Mbadi previously attributed the delays in county fund disbursements at the start of the financial year to legal and administrative hurdles.
The delays stem from a deadlock between the Senate and National Assembly in a mediation committee tasked with resolving disagreements over the Division of Revenue (Amendment) Bill.
The stalemate centres on Sh20 billion, which the National Treasury and the National Assembly propose to reduce. The Senate, however, insists the funds cannot be clawed back once allocated to counties.
Further complicating matters, the Senate rejected the Treasury’s proposal to allocate Sh380 billion to the devolved units, arguing for a higher share to safeguard county operations.
The National Assembly’s Budget and Appropriations Committee failed to resolve the dispute in early November, deepening uncertainty for counties.
