Treasury releases Sh15.1 billion to counties, but uncertainty lingers

Counties can now breathe a sigh of relief after the National Treasury disbursed Sh15.1 billion to 22 devolved units on Tuesday, completing the delayed allocation for February.

This followed the earlier release of Sh17.82 billion to 25 other counties on April 14, bringing the total disbursement for February to Sh32.92 billion.

Despite this, the Treasury still owes counties Sh65.84 billion for the months of March and April, causing continued strain on service delivery and staff salaries across the country.

Governors have persistently voiced concerns over these delays, warning that counties may be forced to shut down if the situation persists.

According to a disbursement schedule from the office of the Controller of Budget, Margaret Nyakang’o, the latest Sh15.1 billion went to 22 counties.

Embu received Sh456.44 million, Garissa Sh704.68 million, Isiolo Sh418.49 million, and Kilifi Sh1.03 billion.

Kisii was allocated Sh790.99 million, Kwale Sh733.15 million, Laikipia Sh457.89 million, and Lamu Sh276.62 million.

Machakos received Sh815.76 million, Meru Sh845.26 million, Murang’a Sh638.50 million, and Nakuru Sh1.61 billion.

Narok got Sh785.55 million, Nyamira Sh455.59 million, Nyandarua Sh504.60 million, and Nyeri Sh554.08 million.

Tana River received Sh580.10 million, Trans Nzoia Sh640.94 million, Turkana Sh1.12 billion, Uasin Gishu Sh720.15 million, Wajir Sh841.73 million, and West Pokot received Sh15.10 million.

These payments follow the previous week’s release of Sh17.82 billion to another 25 counties.

Baringo received Sh568.12 million, Bomet Sh596.28 million, Bungoma Sh949.50 million, and Busia Sh638.76 million.

Elgeyo Marakwet was allocated Sh410.27 million, Homa Bay Sh694.47 million, Kajiado Sh709.32 million, and Kakamega Sh1.10 billion. Kericho got Sh572.76 million, Kiambu Sh1.04 billion, and Kirinyaga Sh463.18 million.

Kisumu received Sh714.45 million, Kitui Sh925.30 million, Makueni Sh722.27 million, and Mandera Sh993.70 million.

Marsabit got Sh645.75 million, Migori Sh712.73 million, Mombasa Sh671.47 million, Nairobi Sh1.71 billion, and Nandi Sh624.41 million.

Samburu received Sh477.97 million, Siaya Sh620.62 million, Taita Taveta Sh430.62 million, Tharaka Nithi Sh373.95 million, and Vihiga Sh449.89 million.

Even with these disbursements, the impact of the delays has been felt deeply. Governors have raised concerns since last year, warning that prolonged withholding of funds was threatening service delivery.

In November, the Council of Governors warned of a potential complete shutdown of county services if the Treasury failed to act.

Council of Governors chairperson Ahmed Abdullahi stressed that counties had not received their rightful allocation more than five months into the 2024–25 financial year.

“We demand that the National Treasury immediately release the funds owed to counties; failure to which, county governments will have no choice but to shut down operations completely,” Abdullahi said.

The law requires the Treasury to release funds by the 15th of each month, as outlined in Section 17 of the Public Finance Management Act, 2012. However, that legal requirement has not been followed consistently.

The Treasury has blamed underperformance in revenue collection by the Kenya Revenue Authority, growing public debt, and competing national funding demands for the recurring delays.

However, county leaders insist that such explanations do not excuse the disruptions caused to devolved units.

While the full February allocation has now been received, the Sh65.84 billion owed for March and April remains a major concern.

Counties continue to call on the Treasury to fast-track the disbursements to avoid further disruptions in the running of local governments and public services.