The National Treasury and Planning has confirmed the disbursement of KSh 43.5 Billion to County Governments on Tuesday, June 22 2021, thus clearing dues up to April 2021.
In a statement, Cabinet Secretary said that it would continue to call on individual county governments to prioritise the payment of pending bills owed to suppliers alongside their statutory dues.
” The payment of these pending bills will be closely monitore and future transfers weighed against the fulfilment of this important obligation to the private sector. This will spur econimic activity at the county level as part of our ongoing and inclusive Economic Recovery Programme,” said Ukur Yatani, Treasury Cabinet Secretary.
Treasury yet to make transfers for May and June
He said that as the economy picks up, so will revenue collection, enabling Treasury to clear dues for May and June 2021.
CS Yatani has also directed all government ministries, departments, agencies, and county governments to clear all pending bills by June 30, 2021.
He said delays in payment of pending bills to businesses had crippled some of them, affecting suppliers’ livelihoods, adding that some counties have huge pending bills.
In the 2021/22 budget, County governments are expected to share Ksh370 billion, with Nairobi Metropolitan services being allocated KSh27.2 billion, which will comprise KSh18 billion for recurrent and KSh9.2 billion for development.