Treasury offices in Nairobi. [ photo / The Big issue.]Treasury's allocations to the counties in four months to October dropped by nearly half to Sh 35.3 billion as compared to Sh 68.27 billion awarded in a similar period last year.
The drop in the allocations has affected most businesses at the 47 counties with some devolved units delaying to pay suppliers’ and workers’ salaries and also frozen projects.
By the close of first quarter of 2017/2018 fiscal year that ended on September, none of the 47 counties had received funds from the treasury following a contradiction brought by the Senate’s approval on disbursement schedule and the cash allocation law that was later signed by the president Uhuru Kenyatta.
Treasury was then forced to loan counties Sh20.3 billion so as to pay workers’ salaries.
According to the treasury, current fiscal year allocation is Sh329.96 billion and it consists of the equitable share of national government revenue, conditional grants from the State and conditional loans and grants from development partners.
In the allocation shares, Nairobi topped the 47 counties to receive a larger share of slightly above Sh 5 billion followed by Kiambu at 2.3 billion with Homabay and Narok receiving Sh 1.5 billion each.
Previously the (11th) Parliament agreed on the county allocations of Sh302 billion through the Division of Revenue Bill saving counties but was never passed as a law.
The current parliament will now be expected to pass the bill so as to pave way for the passage of County Allocation of Revenue Bill that will determine the share each county will get.