Treasury CS Henry Rotich. [Photo/the-star.co.ke]County governments have run out of money after the national government stopped disbursing funds meant for development and salaries.
While the county governments have issued threats of legal action, Treasury has refused to budge, causing the counties to continue tightening their belts.
“This matter should not be prolonged unnecessarily as to do so will invite legal measures by both the council and any of the aggrieved county governments,” Council of Governors Chairman Josphat Nanok said.
In a leaked communication between Accountant General Bernard Ndung’u and county finance executives seen by the Standard, the Government appears to brush off fears that the counties cannot even pay salaries.
Mr Ndung’u tells the counties seeking money to pay October salaries that they would be “very lucky” as “some have not paid as far back as July and September”.
A source at Treasury also disclosed that the Government had provided a life support facility for counties to meet their pressing needs, which would then be deducted from their disbursements. Already, close to two dozen counties have applied for and received the soft loan.