Written By Faith Mwende
A last-minute release of Sh30.99 billion by the National Treasury just five days before the end of the 2024–25 financial year has triggered a flurry of rushed expenditure across county governments, raising red flags over potential misuse and lack of proper accountability.
The funds were disbursed on Wednesday, June 25, sparking an urgent wave of spending requisitions submitted to the Controller of Budget. Counties are now racing to utilize the funds before the government’s financial system, the Integrated Financial Management Information System (IFMIS), closes at midnight on June 30. The timing of the release has drawn criticism from financial watchdogs and devolution experts, who worry the money may be directed toward non-essential or irregular projects masked as end-of-year obligations.
While the disbursement ensures that the national government has cleared all county funding for the fiscal year, the manner in which it was done has sparked concern. With counties now receiving the full Sh418 billion allocation for the 2024–25 financial year including carried-over funds from the previous year questions are being raised about whether the late release undermines fiscal planning and transparency.
The situation mirrors similar delays from previous years. In 2023, for instance, the Treasury failed to release Sh30 billion earmarked for June, only transferring it in the new financial year. This year’s release, though timely in comparison, still falls far outside the regular disbursement calendar stipulated under law.
The Treasury’s move fulfills a promise made earlier this week by Deputy President Kithure Kindiki during the 27th Ordinary Session of the Intergovernmental Budget and Economic Council. At the June 23 meeting, Kindiki had assured counties that all outstanding allocations would be disbursed before the financial year closed. “We don’t have any pending allocations apart from June’s, which will be released on time,” he said.
Despite that assurance, earlier reports had hinted at a possible shortfall or delayed transfer, causing anxiety among county officials. Now, with the funds finally in their accounts, devolved units face intense pressure to spend within days an environment that financial experts say often leads to poor absorption rates and compromised accountability.
Nairobi County received the lion’s share of the disbursement, banking Sh1.61 billion. Other major beneficiaries include Nakuru (Sh1.09 billion), Turkana (Sh1.05 billion), and Kakamega (Sh1.03 billion). Kiambu, Kilifi, Mandera, Bungoma, and Kitui also received large allocations, each nearing or exceeding Sh870 million.
Other counties receiving notable amounts are Meru (Sh795.54 million), Wajir (Sh792.22 million), Machakos (Sh767.77 million), Kisii (Sh744.46 million), Narok (Sh739.68 million), Kwale (Sh690.03 million), and Kisumu (Sh672.42 million).
According to Section 17 of the Public Finance Management Act, 2012, the National Treasury is legally obligated to release funds to counties by the 15th of every month. However, in practice, this timeline is often disregarded. The resulting uncertainty has long plagued county governments, which depend heavily on national allocations to cover basic expenses, including staff salaries, operations, and development projects.
Although Treasury officials have in the past blamed delayed cash flows and competing national obligations, critics argue that the central government continues to prioritize its own expenditures over those of the counties, undermining the spirit of devolution.
The sporadic and unpredictable nature of disbursements, experts warn, could reverse gains made in the last decade of devolution unless reforms are urgently implemented. These include strict adherence to funding timelines, improved financial oversight, and enhanced capacity at county levels to absorb and effectively utilize funds.
As the financial year ends, all eyes are now on how counties will spend the Sh30.99 billion in the remaining days and whether accountability structures will hold firm under pressure.
