Deputy President Prof. Kithure Kindiki has committed to tackling the financial strain on county governments due to prolonged delays in fund disbursements, which has forced many counties into borrowing to meet payroll demands. The cash flow crisis stems from a standoff in the Senate over the Counties Allocation of Revenue (Amendment) Bill, 2024, as lawmakers debate a proposed Ksh.20 billion reduction from the original Ksh.400 billion allocated to counties for the 2024/2025 fiscal year.
The disagreement between the Senate and the National Assembly over this budget cut has stalled disbursements, with counties awaiting clarity on their allocations. Although Parliament has initiated a mediation process, the Senate’s rejection of the Assembly’s amendments has intensified uncertainties for county administrations across the country.
Addressing the issue on Thursday from Harambee Annex House in Nairobi, Kindiki, who is set to lead the Intergovernmental Budget and Economic Council (IBEC), assured that he is working toward sustainable financial solutions to protect counties from further cash shortfalls.
In his remarks, Kindiki highlighted the strides made under President William Ruto’s leadership, noting improvements in Kenya’s economy, including a more stable shilling and reduced costs for essential items like fuel and food. He acknowledged the immediate hardship counties face but pointed to ongoing efforts to strengthen Kenya’s economic foundations.
To address these issues, Kindiki announced plans to convene a consultative forum through IBEC. This meeting aims to expedite the release of outstanding funds and formulate a long-term plan to guarantee reliable funding for counties, reinforcing their financial stability and capacity to deliver essential services.
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