County governments will shut down by June 24, 2021, if the National Treasury fails to disburse funds.
On Monday the Council of Governors Chairman Governor Wambora said the counties will close down if the Ksh102.6 billion owed to them is not released.
Governors had accused the Treasury of delaying billions of shillings intended for counties, thus disrupting the delivery of services such as health and payment of salaries.
In March this year CoG accused the Finance ministry of “not being committed to disburse billions of donor funds and equitable share to counties dating back to November 2020”.
Governor Wambora had then said that Ksh4.2 billion owed to six county governments for November, and an additional Ksh10.1 billion to 18 counties for December 2020 had not been disbursed.
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Last week all eyes were on CS Ukur Yatani as he read the Ksh3.6 trillion budget for the financial year 2021/2022.
Counties were allocated Ksh370 billion in the budget.
Constested Budget
But activists Okiya Omtatah and Wanjeri Nderu filed a petition seeking the court's intervention over the Financial Year 2021/2022 budget.
The activists sought to have the courts quash the Ksh3.66 trillion budget saying it exceeds the limit set by Parliament by Ksh608.85bn.
In March 2020, the Budget and Appropriations Committees said it will reject the government’s 2021/22 budget plan if the deficit goal is set at more than the currently proposed 7.5% of GDP.
It also recommended that the finance ministry restructure some state-owned companies, especially highly indebted ones, to privatise some of them by the end of 2021/22.
