Senate summons Rotich over delayed disbursement of County funds
16 October 2015, 09:35
Nairobi - Treasury Cabinet Secretary, Henry Rotich has been summoned by a Senate Committee to respond on delays in disbursement of funds to counties.
The irked Senate Finance Committee chaired by Billow Kerrow (Mandera) asked Rotich to appear before his committee within seven days and threatened to take action against him if he fails.
“Despite writing twice to Treasury CS to come, he has not honored the invitations. This is a matter of national importance and urgent,” said Kerrow.
Kerrow revealed that the Council of Governors wrote to his committee two weeks ago, raising concerns over delayed disbursement of County funds by the national government leading to poor service delivery.
He stated that the County Allocation of Revenue Act requires the national government to transfer revenue allocated to counties at least 15 days in advance, each month.
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The governors in their letter to the committee had pointed out that the transfers were 2-3 months in arrears, an anomaly that has adversely affected operations in the 47 counties.
“Some counties have been forced to borrow short term loans to pay salaries and meet other financial obligations. This has affected their development plans and loans are repaid with interest,” said Kerrow.
“The government is facing serious financial crisis. Inability to pay salaries continues. Transfer of money to counties and even institutions like Parliament being unable to pay their bills is a matter of serious concern,” he added.
The Mandera Senator further noted that the closure of some bank was sending bad signals to investors.
“Stability of financial institutions is critical to development of a country. The increasing lending rates in banks will affect the country’s economic growth,” said Kerrow.
Others senators present at a press briefing were Senate Minority Leader Moses Wetang’ula (Bungoma), Billow Kerrow (Mandera), Peter Mositet (Kajiado), Ben Njoroge (Nominated), John Lonyangapuo (West Pokot) and Catherine Mukite (Nominated).
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