Deputy President Rigathi Gachagua has stated that governors will now fund counties with collected revenues.
The DP stated after chairing the 20th Intergovernmental Budget Economic Council (IBEC) meeting at his Karen residence that no money will be borrowed from expenditures to fund counties.
“We shall not borrow from the current expenditure, but from the collected revenues. If we don’t collect revenue there will be no money available in the county governments,” he said.
Gachagua added that he has asked the governors to collect enough revenue, as they are in the same boat as the national government.
“Even as others criticise the measures taken in the Finance Bill 2023 that has been tabled in Parliament, the Governors should be cautious of joining the choir,” he said.Â
The DP also stated that the Treasury will distribute April funds to counties this week.
He also stated that the arrears for the month of May will be paid by June 19.
“We have explained to the governors the strains that the Treasury is undergoing in terms of the exchequer and they have understood,” said Gachagua.
He stated that counties have received a total of Sh305 billion so far, with Sh94 billion in outstanding arrears for the three months ending in June.
According to Gachagua, Treasury has already committed to raising funds for June before the fiscal year ends.
