Kenya’s Deputy President, Kithure Kindiki, announced on Friday that the National Government is set to disburse an additional Sh32 billion to county governments by December 19, 2024. This move, aimed at clearing arrears for the month of November, underscores the government’s commitment to strengthening the devolved system of governance and ensuring that counties have the necessary resources to meet their financial obligations. This significant step follows the 25th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC), chaired by Kindiki, which underscored the importance of timely disbursement and the need for efficient coordination between national and county governments.
Meeting Long-standing Financial Obligations
The Sh32 billion to be distributed is crucial in settling debts owed to the counties for the month of November 2024. The disbursement will help counties meet operational costs, pay salaries, and fund development projects that are vital for local development. This move is also a response to longstanding concerns about the delay in disbursements, which have affected the smooth running of county governments across Kenya. Deputy President Kindiki emphasized the significance of this release, stating, “The council appreciates the expedited action of the national treasury in disbursing funds to county governments, and notes that an additional Sh32 billion is due to be disbursed by to the county governments on or by Thursday 19th, December 2024, being the amount due for November 2024.”
Focus on Equalization Fund and County Development
The distribution of these funds also includes allocations for the equalization fund, which is intended to support counties that are marginalized and face unique developmental challenges. By ensuring these funds are disbursed promptly, the government aims to address disparities in development across the regions, thereby promoting balanced growth and improving service delivery in less privileged counties. This focus on the equalization fund highlights the government’s commitment to equitable development and reducing regional disparities in Kenya.
Resolution of Function Transfer Issues
In addition to the disbursement of funds, the IBEC meeting underscored the need for conclusive action on the transfer and gazettement of functions agreed upon by both levels of government. The deadline for these transfers has been set for December 13, 2024, and involves critical administrative functions that are essential for the effective operation of county governments. The Deputy President noted that “The unbundling and transfer of functions that have already been agreed upon between the national and county governments be expedited for conclusion and gazettement by today, 13th December 2024.” This process is aimed at reducing overlap and confusion in governance while allowing for clearer, more efficient service delivery at the county level.
Challenges in Coordination and Revenue Collection
The IBEC also identified challenges in revenue collection and coordination between the national and county governments. It urged the National Treasury to fast-track amendments to the Public Finance Management Act to facilitate easier access to conditional grants by county governments. By improving administrative processes and adopting innovative approaches, the council believes that counties can enhance their revenue collection mechanisms and broaden their financial base. This would also help in minimizing leakages, which are often cited as a significant challenge in the devolved system. The Deputy President’s office has been tasked with convening meetings to resolve issues like the ICRMS system for revenue collection and outstanding disbursements related to the 2023-2024 county government allocation.
Monitoring and Implementation of Resolutions
The IBEC emphasized the importance of monitoring and establishing effective tracking systems to ensure the implementation of resolutions. The need for coordination and cooperation between the two levels of government was stressed, with Kindiki stating, “We need to promote effective coordination, cooperation, and consultation in the implementation of our mandates to insulate devolution and service delivery guided by the spirit of cordial and amicable settlement of concerns.” This approach is seen as critical to addressing ongoing issues and ensuring that all resolutions are implemented in a timely and effective manner.
Conclusion
The announcement of Sh32 billion to be disbursed to county governments is a significant milestone in Kenya’s devolution journey. It reflects the government’s commitment to addressing financial challenges at the county level and ensuring that counties have the necessary resources to fulfill their mandates. The focus on the equalization fund, the transfer of functions, and improving revenue collection mechanisms are crucial steps towards achieving effective service delivery and balanced development in Kenya. As the countdown to the disbursement deadline approaches, all eyes will be on the national and county governments to ensure that these commitments are met, fostering a more resilient and equitable system of governance in the country.
