Sh2 billion increase eases cash crunch in counties

The National Treasury’s disbursement has been increased by Sh2.1 billion in the six months to December thus easing cash crunch that was already slowing service delivery in the regional governments.
As published in the Kenya Gazette, disbursements rose to sh117.2 billion from Shs 115.1 billion during the similar time last year.
County governments were starved of cash from June to September affecting payments to suppliers and stuff salaries. The delay was a result of impasse over a Bill that guides revenue sharing between national and county governments.
The disbursements to counties was sh55 billion, which got the counties Revenue Fund accounts after a week because it had to be by the senate.
In the latest disbursements Nairobi received the largest share of sh5.6 billion, followed by Kakamega sh3.49, Nakuru got sh3.9billion, Turkana got sh3.8 and Lamu received the least, sh992 million followed by Tharaka Nthi at sh1.46 and Elgeyo Marakwet Sh 1.42. The total equitable share allocation to counties from July will be sh316 billion.
Approval of the Division of Revenue Bill that allocates funds to counties and national government had been affected by the dispute between the Senate and National Assembly over allocations but senate late softened their stand and ‘okayed’ the sh316.5 allocation to counties as proposed in the bill.
National Assembly will approve the bill to allow the county allocation bill that determines the amount each county receives.