The National Treasury has released Sh29.6 billion to clear debts it owes to county governments in equitable share funds.

The release of the funds comes following a meeting between the Council of Governors (CoG) and the Ministry of Finance and National Treasury.

Treasury CS Ukur Yatani, Chairman CoG Martin Wambora and James Ongwae held a joint press statement to announce that Treasury had released Sh289.6 billion equitable share funds to counties.

They also announced that the new Sh26.9 billion allocations for June 2021 settled the whole Sh316.5 billion.

“The outstanding balance amounting to Sh26.9 billion allocation for the month of June 2020/21 shall be released today (July 2), thus making a total of Sh316.5 billion, as allocated to County Governments in Division of Revenue Act, 2020,” the statement read.

Read More

  1. KRA reduces Commissioner-General's term amid Githii Mburu successor search
  2. Big win for William Ruto as six Kenya Kwanza affiliate parties fold to join UDA
  3. Ex-Treasury CS Ukur Yatani's bombshell on Sh1.6 billion request by DP Rigathi Gachagua for cars, hospitality after poll

The trio also said that Sh28.5 billion was released to counties as conditional grants over the financial year.

The delay by the Treasury to disburse the money to counties sparked debates with counties threatening to shut down operations to protest the delays.

A total of Sh43 billion was later released on June 23, 2021.

The CoG and the National Treasury also agreed that County Governments will prioritize offsetting pending bills with the resources released for the Financial year 2020/2021 to enable the counties to meet their obligations to the private sector and promote economic growth at the county level