Treasury slow to disburse development funds

The National Treasury is yet to release development funds to most ministries and state departments, two months into the 2016/17 financial year.

By the end of August, only Sh2.64 billion had been released to just 10 ministries and parastatals according to Treasury figures published in the Kenya Gazette.

Treasury set aside Sh461.4 billion for development expenditure, an indication of the slow release of funds for development projects.

But according to treasury officials, most ministries and state agencies are yet to make requests for development expenditure.

The Ministry of Health has so far received the lion’s share of the funds at Sh904.7 million followed by state department of transport at Sh660.5 million.

At the same time, the exchequer has released Sh102.3 billion for recurrent expenditure.

On county allocations, the national treasury has released Sh24.9 billion to the counties in the current financial year.

In the 2016/17 budget counties were allocated Sh284.7 billion to be released gradually.

Nairobi County has so far received Sh2.3 billion followed by Machakos County at Sh1.3 billion.

According to the treasury, money to be disbursed will include funds for level five hospitals in all counties as well as county support for health facilities.