Ruto-led IBEC meeting reviews disbursement of county allocations, pending bills » Capital News

NAIROBI, Kenya, Apr 5 — Counties face an ineligible pending bills of more than Sh108 billion of the total pending bills of Sh155 billion. 

According to the Auditor General, County Executives and County Assemblies have Sh107 billion and Sh1 billion as ineligible pending bills, respectively. 

County Executives face an eligible pending bills of Sh45.5 billion while the County Assemblies have Sh1.9 billion in their books. 

The Controller of Budget Margaret Nyakang’o says the huge amount has partly been contributed by suppliers.

“Those who are owed must ensure proper documentation is done with counties before undertaking any engagement. That way, we will tame this problem,” she said.

She was speaking today during the 16th Intergovernmental Budget and Economic Council (IBEC) held at the Karen Residence of the Deputy President.

The meeting, which was chaired by Deputy President William Ruto, heard that the bills will no longer be a challenge to counties following the adoption of a radical plan by the Council.

The Council resolved that Counties will set realistic own source revenue targets to check budget deficits. 

It was further agreed that the devolved units will have to align their procurement plans to cash flow projections and approved budgets.

IBEC also said that all requisitions for approval of withdrawal of public funds will have to be supported by a schedule for expenditure, a current schedule for pending bills and repayment plans, and bank statements reflecting the settled pending bills for any previous request.

Dr Ruto said progress had been made on the issue of pending bills “but more needs to be done”.

“This year alone, Counties have paid more than Sh15 billion to suppliers. Now, the Treasury and the Attorney General must consult on this huge amount of ineligible pending bills so that a way forward is established,” he said.

Council of Governors Chairman Martin Wambora noted that counties were committed to honouring their eligible obligations “as long as we get funds from the Treasury”.

“Counties are in a dire financial situation; some have not even gotten their disbursement from the Treasury. Timely releases are critical for our functioning,” said Wambora.

So far, the Treasury has disbursed more than Sh221 billion of the Sh370 billion shareable revenue to Counties this financial year.

“By the close of the financial year, all the monies would have been disbursed to counties,” Dr Ruto explained.

Also present in the meeting were Governors Sospeter Ojamoong (Busia), Josphat Nanok (Turkana), Moses Lenolkulal, PS Devolution Julius Korir, and County Executive Committee Members.