County governments in Kenya are facing a financial crisis as the national Treasury is yet to disburse funds totaling KSh 98 billion ($900 million).
This has left county workers unpaid for the months of January, February, and March, with the situation getting worse every day.
Kakamega Governor Fernandes Barasa spoke to the Senate Budget and Appropriations Committee, highlighting the dire situation that the county governments are facing. He expressed concern that the delay in disbursing funds was crippling operations in counties, which rely heavily on the funds for essential services such as healthcare, education, and infrastructure development.
Barasa noted that the unpaid funds, which amounted to almost KSh 96 billion ($880 million), were for the first three months of the current fiscal year. The governor stressed that county workers were feeling the pinch and that the lack of payment was creating a severe cash flow problem.
So far we have not received monies for January, February and March, almost KSh 96 billion,” Kakamega governor Fernandes Barasa said.
The situation is particularly dire in counties that have a high wage bill, such as Nairobi and Mombasa, where the unpaid salaries of county workers have led to strikes and protests. The shortage of funds has also resulted in the delay or suspension of projects, which has had a ripple effect on the local economy.
County governments are mandated to provide essential services to their citizens, and the delay in disbursing funds has left them in a precarious situation. The government has been urged to act urgently to release the funds to the counties and avoid a full-blown financial crisis.
