The National Treasury announced it had disbursed Ksh.30.8 billion to counties on Monday, settling all outstanding arrears owed to devolved governments.
According to the Treasury, a total of Ksh.158 billion has now been paid to counties as of Monday, covering June 2024 arrears and disbursements for July, August, September, and October.
Treasury Cabinet Secretary John Mbadi previously cited legal and administrative hurdles as the cause of delays in releasing funds at the beginning of the current financial year. Ideally, county funds are supposed to be disbursed by the fifth of each month.
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However, delays have been exacerbated by disagreements between the Senate and the National Assembly in the mediation committee tasked with resolving differences over the Division of Revenue (Amendment) Bill.
Earlier this month, the National Assembly's Budget and Appropriations Committee failed to reach a consensus, leaving counties in further financial uncertainty, as funds had been delayed by at least two months.
The main point of contention is the National Treasury’s proposal to reduce county allocations by Ksh.20 billion, a move supported by the National Assembly but opposed by the Senate. Senators argue that once funds are allocated to counties, they cannot be withdrawn.
