March 19, 2025

Treasury clears arrears owed to counties after latest Ksh30.8 billion disbursement

Treasury clears arrears owed to counties after latest Ksh30.8 billion disbursement

The National Treasury has announced that it has cleared arrears owed to County Governments after threatening to halt operations across all 47 counties

The National Treasury has announced that it has cleared arrears owed to County Governments after threatening to halt operations across all 47 counties.

In an update on Monday, October 18, the Ministry said it has fully disbursed the funds to counties except for the current month.

“A total of Ksh.158,024,092,590.00 has been disbursed so far for the months of June (arrears), July, August, September, and October. So far all payments except for the current month of November have been settled,” the Ministry said.

The Ministry also shared documents that indicated it disbursed Ksh 30.8 billion in June and Ksh 32.7 billion in July.

The document also showed that the Ministry disbursed Ksh 30.8 billion and Ksh 32.7 billion in August and September respectively.

Ksh 30.8 million meant for October is currently in process according to the document shared by the National Treasury.

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This development follows the Council of Governors (COG) meeting where they threatened to shut down operations in all counties should the National Treasury fail to remit outstanding funds owed to the devolved units.

In a press statement issued on Monday, November 18, the governors lamented over the delayed release of funds by the Treasury, noting that the delays had hampered service delivery in the counties.

“The National Treasury is yet to disburse Kshs.63.6 Billion for October and November 2024 allocations. However, by December 2024, the 50% will have been exhausted which means Counties will not receive any disbursement from January 2025,” a statement by the governors read.

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