Counties will receive pending and allocated funds for January and February by next month following an agreement between the Treasury and the Council of Governors.
During the intergovernmental Budget and Economic Council meeting held on January 27, the Treasury Cabinet Secretary John Mbadi and the Council of Governors chair resolved key issues on County operations and development.
Alongside a promise to commit to monthly disbursement, the transfer of functions to counties from the national government will also be gazetted within a week.
“The National Treasury reviews the budgets in line with the gazetted devolved functions to ensure that national government ministries, departments and agencies cease to hold funds for any devolved functions, and similarly fastrack implementation of resolutions of the 25th Ordinary session relating to court fines, mineral royalties, library functions and construction of county headquarters,” read the statement in part.
The COG and national treasury are urged to negotiate on the conscious division of revenue as the process of development of the fourth basis for division formula awaits a consultative process.
Implementation of County Aggregation and Industrial Parks (CAIPS) and the disbursement framework for National Government allocations will now be based on performance per county.
The Ministry of Agriculture has been asked to convene a summit in consultation with the CoG Committee on Agriculture within 60 days to liberate agricultural extension and production.
Relevant Ministries will formulate a sustainable engagement framework to discuss the use of education support funds in the counties.
Counties are therefore urged to prioritise payment of pending bills, salaries, and pensions to ensure fiscal responsibility and operational efficiency.
The treasury and the COG also approved that consideration will be made alongside the already approved amendments to the Public Finance Management Act 2012 for additional allocation to counties.
The council also approved the Budget Policy Statement 2025, noting the comments of the Council of Governors for consideration.
Henceforth, the Deputy President will engage the Parliamentary leadership to address the stalemate arising from the stalled mediation between the National Assembly and Senate on the County government’s Additional Allocation Bills.
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