The National Treasury has announced its intentions to withhold funds for 15 counties which have failed to pay pending bills owed to suppliers and contractors.
According to acting Treasury CS, Ukur Yatani, effective 1st December 2019, Treasury will stop the transfers for the 2019/2010 financial year and the transfer of conditional grants.
The 15 counties include Nairobi, Machakos, Narok, Vihiga, Isiolo, Tana River, Migori, Tharaka Nithi, Bomet, Kirinyaga, Nandi, Mombasa, Kiambu, Garissa and Baringo.
The Treasury had to expedite the implementation of state programmes and projects in line with the big four agenda. The administration embarked on a budget alignment exercise in line with the FY 2019/2020 budget.
The aligned budget for the FY 2019/2020 provided a framework that would guide Kenya’s sustainable development agenda. Therefore all the state organs and agencies are to practise prudence and financial discipline.
All state organs and agencies are required to fully implement The National Treasury Circular No 148. They are to effect a moratorium on projects unless the projects had received prior approval. They are to also abide by the negotiation or execution of any Memoranda of understanding state Corporation are to immediately remit surplus funds to the National Treasury. Transfer ownership of all treasury bills and bonds currently held in the name of the sate corporations. In addition, they should also remit the entirety of Appropriations-in-Aid revenues to the National Treasury.
The State organs and agencies are to ensure that all MDAs in the National Government have all their financial obligations budgeted and in compliance with the statutory timelines. They should ensure that the first charge on all exchequer releases be the payment of all outstanding payments due and paid to suppliers. Payments with audit issues will also be concluded or rejected before the end of the quarter.
State corporations are to withdraw any court cases between state agencies relating to disputes on government-funded projects and opt for mediation facilitated by the Attorney General and the Office in conjunction.
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