Governors seek Ifmis extension to absorb Sh67b
National
By
Benard Lusigi and Mary Imenza
| Jun 26, 2024
The Council of Governors (CoG) has called on the national government to extend the closure of the Integrated Financial Management Information System (IFMIS) by three weeks to facilitate the absorption of the counties Sh67.45 billion equitable share.
CoG said the funds have been pending for the past three months, and the financial year ends on June 30.
The CoG, through its Finance, Planning, and Economic Affairs Committee Chairperson and Kakamega Governor, Fernandes Barasa, called on the National Treasury to expedite the release of funds owed to devolved units for April, May, and June of the current financial year.
Barasa also urged the Controller of the Budget to fast-track the approval process for April to enable counties to receive the funds. "On behalf of the 47 governors, we are asking the Treasury for an extension for IFMIS so that we can pay contractors. I ask the National Treasury to ensure the money reaches the grassroots because the financial year ends this weekend on the 30th. We are demanding that arrears of Sh34.69 billion for May and Sh32.76 billion for June released before the closure of the financial year," said Barasa.
"My plea to the Cabinet Secretary of Finance, Prof Njuguna Ndung'u is to release the funds withheld from April, May, and June."
Barasa was speaking during an inspection of the ongoing upgrade of the Mahiakalo-Nyayo-Tea Zone Road to bitumen standards and the construction of the Rev George Abura bridge in Shirere, Lurambi constituency.
He expressed concerns about accumulating pending bills in counties if the Treasury does not release the funds on time, allowing counties to absorb the monies. "As we approach the closure of the financial year 2023/2024, I would like to ask the National Treasury to consider releasing the pending disbursements for the past three months. Since April, we have not received funds from the national government, and we have ongoing projects," he said.
Despite the challenges, Barasa noted that governors have welcomed the Sh400 billion allocated by the national government as an equitable share. However, they hope for an increase based on projected revenue collection.
"We initially expected Sh450 billion. Earlier, the National Treasury had allocated Sh391 billion, which we rejected. Sh400 billion was a product of mediation. Considering the economic times, we, as the CoG, are content with Sh400 billion for now," said Barasa.
Barasa announced that starting next month, his administration will provide Sh50,000 monthly to widows in groups, urging the government to release funds meant for county operations.
Speaking at the Inter-Governmental Budget and Economic Council (IBEC) Summit on May 6, 2024, Deputy President Rigathi Gachagua noted that as of March 31, 2024, the total pending bills reported by the 47 counties stood at Sh150.66 billion.
Governors have consistently raised concerns about delays in fund disbursement, even as the National Assembly agreed to allocate Sh400 billion for the financial year 2024/2025.