The Council of Governors is calling on the National Treasury to expedite release Sh63 billion ($486 million) arrears owed to counties for the months of February and March.

Chairman of Finance, Planning and Economic Affairs of the Council of Governors Fernandes Barasa has revealed that all the 47 counties are owed Ksh31 billion ($239 million) for the month of February and Ksh32 billion ($247 million) for March.

Governor Barasa said the continued delay of release of the funds has strained delivery of services at the devolved level.

“We are calling on the National Treasury to expedite releases of pending disbursements since we have functions to perform,” said the governor. 

Speaking on Tuesday in Ikolomani and Khwisero sub-counties during the distribution of free maize seeds and fertilizer to farmers, Barasa said lack of timely disbursements of funds has left many devolved units struggling to function effectively, impacting essential services and development projects.

He said the Council of Governors was opposed to the new equitable sharing formula fronted by the Commission on Revenue Allocation on grounds that it could result in significant loss of finances to 31 countries. Barasa said the fourth basis of revenue sharing is flawed and discriminatory and that it could disadvantage 31 counties and only benefit 16 counties.

“Poverty or distance from Nairobi cannot be used as a perimeter for revenue sharing, because we too have economic stimulus projects we are implementing for the poor,” he added.

“The fourth formula basis is discriminatory and we appeal to the Senate to reject the new sharing basis being proposed for 2025-2032,” he added.

Governor Barasa called on the Senate to reject the fourth formula and instead consider using the third formula, which he believes is more equitable and suitable for all counties.

It is estimated that 31 counties would lose up to Ksh12.106 billion ($93.337 million) if CRA implements the new proposal.

• A Tell Media / KNA report / By George Kaiga