Counties fail to utilise Sh9b – ICPAK

The Institute of Public Accountants of Kenya (ICPAK) has revealed that Isiolo, Nyeri, Taita Taveta, Trans Nzoia and Tharaka Nthi counties failed to spend Sh9.2 billion allocated to them by the national treasury in the first quarter of the 2015/2016 financial year.

Speaking while releasing a report regarding financial governance matters, ICPAK Chairman Fernandes Barasa said that the failure to utilise the funds was brought about by the counties’ reluctance to use the E-procurement module as required by the government.

The chairman noted that counties lack the human resource capacity to assist in the management of devolved funds.

“In order to rectify this anomaly, IFMIS directorate should liase with county governments to evaluate the capacity of users of the E-procurement module, it should be supplemented by a rigorous training program to build the capacity of the procurement officers at the county level,” said Mr Barasa.

In the report, county governments were accused of mismanaging public funds with most of the funds being used on personal benefits and recurrent expenditure.

According to the report, personal benefits account for 56.2 percent of county expenditure, adding that the number could be higher as some counties were not factored in a report compiled by the comptroller of budget.

“County governments should work with the national government to devise and implement effective strategies to manage personal benefits,” he stressed.

He further advised the county governments to support the comptroller of budget’s call for cooperation among administrators in matters of public fund management.

Barasa was speaking at a press conference at the Kenya Institute of Monetary Studies (KIMS) where ICPAK was holding its 24^th Economic symposium.