The National Treasury has transferred Sh26.9 billion to county governments as disbursement for June in the financial year 2020/2021.
In a joint statement with the Council of Governors’, CS Ukur Yatani said, “The outstanding balance amounting to Sh26.9 billion allocation for the month of June 2020/21 shall be released today, thus making a total of Sh316.5 billion, as allocated to County governments in Division of Revenue Act, 2020.”
Yatani said an additional Sh28.5 billion in conditional grants has also been released to the counties.
The institutions noted that they have agreed to prioritise the clearing of pending bills.
“This will enable counties to meet their important obligation to the private sector and spur economic activity at the county level as part of the ongoing and inclusive Economic Recovery Programme.”
This comes a few days after CS Yatani announced the transfer of Sh43.5 billion to county governments.
The Sh43.5 billion was to clear dues owed to the counties for April 2021, by Treasury.
In a statement, the CS insisted that counties should prioritise payment of pending bills owed to their suppliers and their statutory dues.
“The payment of these pending bills will be closely monitored and future transfers weighed against the fulfilment of this important obligation to the private sector,” Yatani said.
On Thursday last week, the Council of Governors said the Sh43.5 billion disbursed by the National Treasury to the county governments was not enough to clear pending bills.
The council’s Finance Chairperson Nderitu Muriithi said the Treasury was yet to release funds for the months of May and June for the last financial year, which amounted to Sh58 billion.
“The amount disbursed on Wednesday is not sufficient to clear all the pending bills and at the same time facilitate normal county operations,” Muriithi said.
He added that the amount released by Yatani was the normal monthly allocation to counties meant to facilitate service delivery to the citizens.