The Council of Governors (CoG) has responded to a report by Controller of Budget Margaret Nyakang'o on development expenditure in the first quarter of the 2024/25 financial year.
In a statement on Thursday, December 5, CoG Chairman Ahmed Abdullahi termed the reports as contemptuous, noting that counties received zero exchequer releases from the National Treasury during the quarter.
He explained that development done during that quarter was funded from last the financial year's arrears, adding that most counties were forced to turn to banks for short-term loans to sustain service delivery.
"We find contemptuous, the reports of Counties spending 0% on development. As a matter of fact, counties received zero exchequer releases from the National Treasury during the quarter. Any development done during that quarter was funded from last FY's arrears while most counties were forced to go for short-term loans from commercial banks to pay salaries and sustain service delivery," he said.
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Abdullahi noted the first disbursement of quarter one was done during the last month of the quarter, and that no county was able to access the money by the end of the quarter.
He stated that the allocation for July was released on September 24, 2024, an 85-day delay, while the allocation for August was released on October 17, 2024, a 78-day delay.
Ahmed further indicated that the allocation for September was released on November 14, 2024, a 75 days delay, and for October was released on November 18, 2024, a 49-day delay.
"Since we were in the situation where CARA was not finalized on time by the houses of Parliament, the first disbursement of the 2024/2025 Financial Year was released after an opinion from the Attorney General that counties can be funded on a vote on account in the event of delays in enactment of CAR," he said.
Ahmed further remarked,
"You cannot spend that which you do not have. This has caused a misleading impression and unwarranted agitation among the members of public and the media to the detriment of the County governors and their governments. The controller of budget has continued to scandalize counties while she is aware of the challenges which delayed the release of funds, most of which are orchestrated by her office. We condemn the unwarranted and unprofessional behavior on the part of the controller of the budget in the strongest terms possible. This is a facilitative office that must live up to, and respect their mandate."
A report by the Controller of Budget revealed 10 counties that did not incur development expenditure during the first quarter of the 2024/25 financial year.
In the report released in November 2024, the counties listed to have spent Ksh0 on development between July to September 2024 included Nairobi City County led by Governor Johnson Sakaja.
Lamu, Kajiado, Kisii and Baringo counties also spent nothing on development projects.
Likewise, the county governments of Elgeyo-Marakwet, Nyandarua, Tana River, Uasin Gishu, and West Pokot also did not register any expense on development projects.
