DP Gachagua to Chair Intergovernmental Budget Economic Council Summit

Deputy President Rigathi Gachagua will on Monday chair an Intergovernmental Budget Economic Council (IBEC) summit.

Gachagua called the meeting at a time when counties are having a cash shortage due to a backlog in funding.

The governors claim that Treasury has not yet released monies totaling Sh66 billion, which represent April and May arrears.

Kakamega Governor Fernandes Barasa addressed his worries in a speech on Sunday, stating that the counties had faced major difficulties as a result.

He claimed that it had made it challenging for them to successfully carry out daily tasks and conduct important programs.

“Before the end of this month, the Integrated Financial Management Information System (IFMIS) will be closed, making it more difficult for governors to work. We appeal to Treasury to release money owed to counties,” Barasa said.

The meeting will be attended by the Ministry of Devolution, the Council of Governors, and other State organizations.

On April 24, the county administrators gave residents a 14-day window to protest by closing their counties.

Treasury, however, averted this by releasing Sh31.4 billion for the month of February.

“Since the Council’s notice on this matter, issued on April 24, 2023, the National Treasury has disbursed February 2023 allocations amounting to Sh31.45 billion to the 47 Counties. Currently, the outstanding monies owed are Sh29.6 billion for March 2023 allocation,” said CoG Chairperson Anne Waiguru on May 2.

The governor of Kirinyaga said in a statement that the council and Treasury had agreed that going ahead, the latter would be quick in disbursing funds to counties.

“Additionally, it has been resolved that the March allocations be disbursed by May 15, 2023, and April allocations by the end of May.

The disbursements for May and June are to be issued by the first two weeks of June to allow counties to absorb these resources within the financial year,” she said.

The governor of Kirinyaga said in a statement that the council and Treasury had agreed that going ahead, the latter would be quick in disbursing funds to counties.

Members will also talk about proposals for amendments to the Public Finance Management (PFM) Act and recommendations for a fair division of tax money between the national government and counties.