Treasury records indicate that Sh346.53 billion had already been transferred to counties by the end of May as equitable share allocations. This amount represents 83.5 per cent of the total Sh415 billion set aside for county governments in the current financial year, leaving Sh68.5 billion still pending disbursement.
The remaining balance now places the Treasury on the spot, as it is expected to release the funds within June to comply with constitutional requirements before the financial year ends.
This effectively means the government must push out close to two months of county allocations within a very short period, raising concern over the strain on cash flows and payment scheduling.
County administrations depend on these transfers to keep essential services running. The money is used to pay health workers, maintain roads, fund water projects, and cater for salaries and other devolved functions that keep local governments operational.
The monthly disbursement structure is meant to ensure counties receive steady and predictable funding. However, disruptions in timing have repeatedly affected operations, with some counties reporting stalled projects, growing unpaid bills, and delays in staff payments.
However, disruptions in timing have repeatedly affected operations, with some counties reporting stalled projects, growing unpaid bills, and delays in staff payments.
Over time, the National Treasury has faced criticism for inconsistent release of funds, with some payments stretching beyond the June financial year deadline.
County governments are heading into a tight financial countdown as they wait for Sh68.5 billion from the National Treasury, with only days left before the closure of the current financial year and pressure mounting on the government to meet its legal funding obligations.
Treasury records indicate that Sh346.53 billion had already been transferred to counties by the end of May as equitable share allocations. This amount represents 83.5 per cent of the total Sh415 billion set aside for county governments in the current financial year, leaving Sh68.5 billion still pending disbursement.
The remaining balance now places the Treasury on the spot, as it is expected to release the funds within June to comply with constitutional requirements before the financial year ends. This effectively means the government must push out close to two months of county allocations within a very short period, raising concern over the strain on cash flows and payment scheduling.
County administrations depend on these transfers to keep essential services running. The money is used to pay health workers, maintain roads, fund water projects, and cater for salaries and other devolved functions that keep local governments operational.
The monthly disbursement structure is meant to ensure counties receive steady and predictable funding. However, disruptions in timing have repeatedly affected operations, with some counties reporting stalled projects, growing unpaid bills, and delays in staff payments.
Over time, the National Treasury has faced criticism for inconsistent release of funds, with some payments stretching beyond the June financial year deadline. The Council of Governors has raised concern on several occasions, saying such delays weaken devolution and slow down service delivery across counties.
These challenges are often linked to limited fiscal space at the national level, where competing priorities place pressure on available revenue. A significant share of government income is also directed toward debt repayment, reducing flexibility in spending decisions.
Treasury figures show that debt servicing reached Sh1.71 trillion in the 11 months to May, consuming 78.8 per cent of total tax revenue of Sh2.17 trillion over the same period. The figures point to the heavy repayment burden that continues to shape how government funds are allocated across sectors.
The Controller of Budget has previously warned that late exchequer releases pose risks to county operations and budget discipline. It has also noted that heavy end-of-year disbursements leave counties with limited time to absorb and utilize funds effectively before the financial year closes in June.
With the deadline fast approaching, focus is now on whether the Treasury will clear the outstanding Sh68.5 billion in time or push part of it into the next financial cycle, prolonging pressure on county governments already stretched by delayed funding.
County governments are heading into a tight financial countdown as they wait for Sh68.5 billion from the National Treasury, with only days left before the closure of the current financial year and pressure mounting on the government to meet its legal funding obligations.
Treasury records indicate that Sh346.53 billion had already been transferred to counties by the end of May as equitable share allocations. This amount represents 83.5 per cent of the total Sh415 billion set aside for county governments in the current financial year, leaving Sh68.5 billion still pending disbursement.
The remaining balance now places the Treasury on the spot, as it is expected to release the funds within June to comply with constitutional requirements before the financial year ends. This effectively means the government must push out close to two months of county allocations within a very short period, raising concern over the strain on cash flows and payment scheduling.
County administrations depend on these transfers to keep essential services running. The money is used to pay health workers, maintain roads, fund water projects, and cater for salaries and other devolved functions that keep local governments operational.
The monthly disbursement structure is meant to ensure counties receive steady and predictable funding. However, disruptions in timing have repeatedly affected operations, with some counties reporting stalled projects, growing unpaid bills, and delays in staff payments.
Over time, the National Treasury has faced criticism for inconsistent release of funds, with some payments stretching beyond the June financial year deadline. The Council of Governors has raised concern on several occasions, saying such delays weaken devolution and slow down service delivery across counties.
These challenges are often linked to limited fiscal space at the national level, where competing priorities place pressure on available revenue. A significant share of government income is also directed toward debt repayment, reducing flexibility in spending decisions.
Treasury figures show that debt servicing reached Sh1.71 trillion in the 11 months to May, consuming 78.8 per cent of total tax revenue of Sh2.17 trillion over the same period. The figures point to the heavy repayment burden that continues to shape how government funds are allocated across sectors.
The Controller of Budget has previously warned that late exchequer releases pose risks to county operations and budget discipline. It has also noted that heavy end-of-year disbursements leave counties with limited time to absorb and utilize funds effectively before the financial year closes in June.
With the deadline fast approaching, focus is now on whether the Treasury will clear the outstanding Sh68.5 billion in time or push part of it into the next financial cycle, prolonging pressure on county governments already stretched by delayed funding.
County governments are heading into a tight financial countdown as they wait for Sh68.5 billion from the National Treasury, with only days left before the closure of the current financial year and pressure mounting on the government to meet its legal funding obligations.
Treasury records indicate that Sh346.53 billion had already been transferred to counties by the end of May as equitable share allocations. This amount represents 83.5 per cent of the total Sh415 billion set aside for county governments in the current financial year, leaving Sh68.5 billion still pending disbursement.
The remaining balance now places the Treasury on the spot, as it is expected to release the funds within June to comply with constitutional requirements before the financial year ends. This effectively means the government must push out close to two months of county allocations within a very short period, raising concern over the strain on cash flows and payment scheduling.
County administrations depend on these transfers to keep essential services running. The money is used to pay health workers, maintain roads, fund water projects, and cater for salaries and other devolved functions that keep local governments operational.
The monthly disbursement structure is meant to ensure counties receive steady and predictable funding. However, disruptions in timing have repeatedly affected operations, with some counties reporting stalled projects, growing unpaid bills, and delays in staff payments.
Over time, the National Treasury has faced criticism for inconsistent release of funds, with some payments stretching beyond the June financial year deadline. The Council of Governors has raised concern on several occasions, saying such delays weaken devolution and slow down service delivery across counties.
These challenges are often linked to limited fiscal space at the national level, where competing priorities place pressure on available revenue. A significant share of government income is also directed toward debt repayment, reducing flexibility in spending decisions.
Treasury figures show that debt servicing reached Sh1.71 trillion in the 11 months to May, consuming 78.8 per cent of total tax revenue of Sh2.17 trillion over the same period. The figures point to the heavy repayment burden that continues to shape how government funds are allocated across sectors.
The Controller of Budget has previously warned that late exchequer releases pose risks to county operations and budget discipline. It has also noted that heavy end-of-year disbursements leave counties with limited time to absorb and utilize funds effectively before the financial year closes in June.
With the deadline fast approaching, focus is now on whether the Treasury will clear the outstanding Sh68.5 billion in time or push part of it into the next financial cycle, prolonging pressure on county governments already stretched by delayed funding.
The Council of Governors has raised concern on several occasions, saying such delays weaken devolution and slow down service delivery across counties.
These challenges are often linked to limited fiscal space at the national level, where competing priorities place pressure on available revenue. A significant share of government income is also directed toward debt repayment, reducing flexibility in spending decisions.
Treasury figures show that debt servicing reached Sh1.71 trillion in the 11 months to May, consuming 78.8 per cent of total tax revenue of Sh2.17 trillion over the same period. The figures point to the heavy repayment burden that continues to shape how government funds are allocated across sectors.
The Controller of Budget has previously warned that late exchequer releases pose risks to county operations and budget discipline. It has also noted that heavy end-of-year disbursements leave counties with limited time to absorb and utilize funds effectively before the financial year closes in June.
With the deadline fast approaching, focus is now on whether the Treasury will clear the outstanding Sh68.5 billion in time or push part of it into the next financial cycle, prolonging pressure on county governments already stretched by delayed funding.