Treasury releases Ksh.43.5 billion to counties, urges governors to clear pending bills

The National Treasury now says an additional Ksh.43.5 billion has been disbursed to county governments to clear dues owed to them up to April this year.

Treasury Cabinet Secretary Ukur Yatani stated that the ministry will clear the remaining dues for May and June 2021 in the coming days, further urging county bosses to clear their pending bills.

“The National Treasury & Planning (NTP) wishes to confirm that an additional KES 43.5 billion was released to County Governments on Tuesday 22nd June, 2021, thereby clearing dues up to April 2021,” said CS Yatani in a press statement released on Wednesday.

“Accordingly, the National Treasury & Planning will continue to call on individual County Governments to prioritise the payment of pending bills owed to suppliers alongside their statutory dues.”

The CS added: “The payment of these pending bills will be closely monitored and future transfers weighed against the fulfilment of this important obligation to the private sector, so as to spur economic activity at the county level as part of our ongoing and inclusive Economic Recovery Programme.”

The Council of Governors (CoG) had last week threatened that they would be forced to shut down operations by June 24, 2021 if the National Treasury failed to disburse Ksh.102.6 billion owed to them.

CoG Chairman Martin Wambora, who is also the Embu Governor, said Treasury was yet to disburse the said amount yet the end of the financial year was nearing.

Governor Wambora broke down the Ksh.102.6 billion as follows: Ksh.3.5 billion owed to Nairobi County Government as arrears for the financial year 2019/2020; Ksh.2.6 billion owed to Nairobi County Government for January and another Ksh.1.4 billion for February.

He also said Ksh.14.4 billion was owed to 25 County Governments for March; Ksh.28.5 billion to 47 County Governments for April; Ksh.25.3 billion for May, and Ksh.26.9 billion for June.