County governments across the country are grappling with a cash crisis after the national government failed to disburse money for three consecutive months.
It is now emerging that employees working for the 47 devolved units are experiencing salary delays from March 2023.
The situation has been occasioned by a liquidity constraint with the National Treasury yet to release a total of Ksh98.28 billion.
Already some County governments have issued internal memos to employees warning and preparing them with no reprieve in sight.
According to Bomet County Secretary Simon Langat, they have been running on empty from March, and things could get worse.
“We note with alot of regrets the delay of April Salaries to our staff…This has been caused by the countrywide delay of 3 months (March, April and May) disbursement to all counties by the National treasury,” Simon Langat said.
County Governments Broke
In March, Treasury failed to release Ksh30.83 billion, followed by additional delays in April (Ksh34.68 billion) and May (Ksh32.76 billion).
“We have not received money for two months now, we have been on overdrafts with financial institutions for the two months on payment of our staff salaries.
Financial institutions cannot extend the two months as per the contract which means we are going to have delayed salaries eventually,” County Secretary Narok stated.
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Consequently, County governments have warned that if the situation continues beyond May, the devolved units will not be able to operate prompting a shutdown.
Senate, National Assembly Supremacy Battles
Meanwhile, a standoff between the National Assembly and the Senate could worsen the situation.
Senate revised the Division of Revenue Bill, 2024 to raise the allocation to Ksh415 billion from Kshh391 billion approved by the National Assembly.
Following the amendments, Senate allocated Ksh2.52 trillion to the national government and Kshh415 billion to the 47 counties.
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“I urge this house to agree with BAC (Budget and Appropriations Committee) that we reject the senate amendment,” stated National Assembly’s Budget Committee Chair, Ndindi Nyoro. Majority Leader in the National Assemby Kimani Ichunng’wah agreed with Nyoro on the allocation debate.
“If we were to agree with the senate this afternoon, something else must give way. If we give Sh10 billion from road maintenance, you will sacrifice that money to your governors hoping that they will build the same roads,” Ichung’wa argued.
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