Yatani ordered to immediately disburse revenue due to 35 counties

National Treasury acting CS Ukur Yatani and the Controller of Budget have been ordered to immediately disburse the equitable share of revenue for 35 counties.

Justice Weldon Korir issued the orders on Friday two days after the Council of County Government filed a suit.

“That pending hearing and determination of this application, an interim order is hereby issued to compel the 1st and the 2nd respondent to immediately disburse the equitable share of revenue due to the 35 county governments pursuant to the provisions of Article 219 of the Constitution as read together with Section 17 (6) of the Public Finance Management Act,” the ruling reads.

This now puts into doubt the clearance of part of the outstanding arrears to county suppliers while heightening the risk of the creation of new pending bills.

Last month, State House through the office of the Head of Public Service, issued orders on the freeze of transfers to counties that failed to clear pending bills.

This followed a meeting by the Fred Matiang’i-led Intergovernmental Budget and Economic Council (IBEC).

County governments were then required to establish pending bills resolution committees.

However, when they defied the directive, the disbursement of revenue from Treasury was frozen in defiance to the Parliamentary Budget and Appropriations Committee (BAC) rejection of the proposal.

It drew the wrath of the Council of Governors (COG) who had previously reiterated on the negative impact of exchequer denials on day to day county operations.