Treasury insists on disbursing Ksh.385B to counties, as Senators demand Ksh.407B

The National Treasury has asked the Senate to okay the allocation of Ksh.385 billion to counties in the next financial year.

Appearing before the Senate Committee on Finance and Budget, Treasury Cabinet Secretary Prof. Njuguna Ndung’u said the government will not be able to honor the Ksh.407 billion being pushed by the Senate.

While asking Kenyans to tighten their belts for tough times ahead, Prof. Ndung’u told the Mandera Senator Ali Roba-led committee that the burden of paying debt is too high for the country among other factors that are leading to underperforming of revenue.

The CS promised to avail funds for January by end of next week after its plan to disburse the funds this week hit a snag.

“The government is also implementing a fiscal consolidation plan so as to lower the fiscal deficit and slow down debt accumulation,” he said.

However Senators were not convinced by Prof. Ndung’u’s sentiments insisting that Treasury must increase the amount by at least Ksh.22 billion.

This would see the counties get an additional Ksh.37 billion from the current financial year’s Ksh.370 billion allocation in equitable share.

“The proposed allocation of Ksh.385 billion by the National Treasury will not be sufficient to accommodate all the components,” said Senator Roba.