Counties put on notice over pending bills
Nairobi County is among 15 county governments that have been put on notice by the National Treasury for failure to clear the stock of their eligible pending bills in accordance with the law.
In a circular released by the acting CS National Treasury and Planning Ukur Yatani, the 15 counties namely;
1. Narok
2. Machakos
3. Nairobi City
4. Vihiga
5. Isiolo
6. Tana River
7. Migori
8. Tharaka-Nithi
9. Bomet
10. Kirinyaga
11. Nandi
12. Mombasa
13. Kiambu
14. Garissa
15. Baringo
This delayed payment for goods and services procured by National Government MDAs and County Governments have led to deterioration of financial positions of businesses and in particular the SMEs, including businesses owned by the special segment (women, youth and persons with disabilities). This has led to negative impact on the economy, including less than optimal levels of employment and escalation of poverty levels. Cases of individuals and firms experiencing unmet financial obligations including failure to repay loans are widespread all-over the country.
By end of June,2019 the National Treasury had disbursed Sh65 billion to County governments to clear their pending bills.
The National Treasury has warned that it will stop with effect from 1st December, 2019 transfers of the FY 2019/20 equitable share of revenue due to the defaulting counties starting with the 15 county governments earlier mentioned given that they have not demonstrated any effort to clear the stock of their eligible pending bills in accordance with the law. It will also stop the transfer of Conditional Grants to the 15 Counties for this Financial Year 2019/2020 as well as continue monitoring the stock of eligible pending bills estimated at Ksh. 28 billion and take appropriate measures to ensure prompt payment.
Nairobi County is among 15 county governments that have been put on notice by the National Treasury for failure to clear the stock of their eligible pending bills in accordance with the law.
In a circular released by the acting CS National Treasury and Planning Ukur Yatani, the 15 counties namely;
1. Narok
2. Machakos
3. Nairobi City
4. Vihiga
5. Isiolo
6. Tana River
7. Migori
8. Tharaka-Nithi
9. Bomet
10. Kirinyaga
11. Nandi
12. Mombasa
13. Kiambu
14. Garissa
15. Baringo
have not made any effort to clear their pending Bills in FY 2019/20 since their reported eligible pending bills have remained static between 1st of July and 31st October 2019 and sadly holding huge proportion of the pending bills.
As per updated returns submitted by National Government MDAs, pending bills as at the end of the FY 2018/19 amount to Ksh.96.1 billion of which AGPO pending Bills were Ksh.2.6 billion and Non-AGPO were Ksh.93.5 billion.
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| Pic Courtesy |
As per updated returns submitted by National Government MDAs, pending bills as at the end of the FY 2018/19 amount to Ksh.96.1 billion of which AGPO pending Bills were Ksh.2.6 billion and Non-AGPO were Ksh.93.5 billion.
This delayed payment for goods and services procured by National Government MDAs and County Governments have led to deterioration of financial positions of businesses and in particular the SMEs, including businesses owned by the special segment (women, youth and persons with disabilities). This has led to negative impact on the economy, including less than optimal levels of employment and escalation of poverty levels. Cases of individuals and firms experiencing unmet financial obligations including failure to repay loans are widespread all-over the country.
By end of June,2019 the National Treasury had disbursed Sh65 billion to County governments to clear their pending bills.
The National Treasury has warned that it will stop with effect from 1st December, 2019 transfers of the FY 2019/20 equitable share of revenue due to the defaulting counties starting with the 15 county governments earlier mentioned given that they have not demonstrated any effort to clear the stock of their eligible pending bills in accordance with the law. It will also stop the transfer of Conditional Grants to the 15 Counties for this Financial Year 2019/2020 as well as continue monitoring the stock of eligible pending bills estimated at Ksh. 28 billion and take appropriate measures to ensure prompt payment.
Hmmm, where does constitution say the national govt can refuse to remit tax money to counties when it is feels like counties are not settling their debts? i thought this is the role of judiciary not a cabinet secretary.
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