The Intergovernmental Budget and Economic Council (IBEC) has called on the National Treasury to release the delayed December 2024 funds to counties, ensuring timely disbursement of county allocations moving forward. The decision was made during the 26th IBEC meeting held on Monday, chaired by Deputy President Kithure Kindiki at his official residence in Karen, Nairobi.
One of the key resolutions from the meeting was for the Treasury to clear the pending December 2024 disbursements, which had not been processed in time. IBEC further resolved that the National Treasury should prioritize the disbursement of January and February 2025 allocations by the end of February, with the goal of establishing a regular, predictable transfer of funds to counties thereafter. These monthly transfers, which should ideally occur by the fifth of each month, play a crucial role in the operational efficiency of county governments.
The National Treasury had already disbursed Sh32 billion to counties in mid-December 2024 to cover the November 2024 dues. However, the delay in December’s funds raised concerns regarding the capacity of county governments to meet their obligations and service delivery needs.
Additionally, during the meeting, IBEC proposed the creation of a customer desk by the Council of Governors and the Controller of Budget. This desk would be tasked with handling and processing any issues related to the approval of funds for counties, specifically in relation to withdrawals from the County Revenue Fund. The County Revenue Fund is the designated account for money raised or received on behalf of county governments, and its smooth operation is essential for financial transparency and governance at the county level.
IBEC also emphasized the need for the National Treasury to review county budgets in line with the devolved functions as gazetted. This would ensure that national government ministries, departments, and agencies no longer retain funds for functions that have already been devolved to counties. The review aims to address bottlenecks in the devolution process, including those related to the implementation of key resolutions passed by IBEC, such as court fines, mineral royalties, and the construction of county headquarters.
In December 2024, President William Ruto had ordered the transfer of pending budgets and functions still held by the national government to the counties. A report by the Intergovernmental Relations Technical Committee (IGRTC) revealed that at least 10 county functions, worth over Sh272.2 billion, had not yet been devolved. The move to fast-track these transfers is expected to enhance governance, improve service delivery, and strengthen intergovernmental cooperation across the country.
