NAIROBI, Kenya, Jan 11-County governments have threatened to take legal action against the National Treasury, over delayed disbursement of equitable share for four months, amounting to Sh94.7 billion.
Council of Governors Chairman Wycliffe Oparanya on Monday wrote to Treasury Cabinet Secretary Ukur Yattani, in which he said that some counties had not received funds since September.
Due to failure by the Treasury to release the funds, Oparanya said counties are unable to pay salaries and contractors among others.
“Please note that if the disbursement is not made forthwith the County Governments will have no option other than seek legal redress while closing down to minimize further damage and suffering to employees,” stated Oparanya.
He asked Treasury to expedite the release of the funds so as to ensure service delivery continues uninterrupted.
The funds in question were released in September, nearly three months into 2020/2021 financial year.
This was occasioned by the prolonged delay in the passage of the division of revenue formula, necessary for sharing of funds in the counties by the Senate.
The 47 County governments were allocated Sh378.1 billion, out of which Sh316.5 billion were meant for equitable share and conditional grants by the national government.
The grants include Sh6.21 billion for lease of the controversial medical equipment, and Sh4.33 billion for 11 level 5 hospitals.
Others include Sh9.43 billion from the road maintenance and fuel levy. Loans and grants from development partners’ account for Sh30.2 billion.