NAIROBI, Kenya – The 26th Intergovernmental Budget and Economic Council (IBEC) on Monday resolved that the National Treasury clear pending December 2024 disbursements to counties by January 2025.
The meeting, chaired by Deputy President Kithure Kindiki at his Official Residence in Karen, also set ambitious timelines for future allocations, committing to disbursing January and February funds within February and maintaining monthly transfers thereafter.
This pledge follows persistent delays that have hindered county operations.
KAREN, NAIROBI CITY COUNTY, KENYA MONDAY, JANUARY 27, 2025 The 26th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC), Karen, Nairobi.
The National Treasury disbursed Sh32 billion to counties in mid-December 2024, settling November allocations, despite the constitutional requirement that transfers occur by the fifth of each month.
The delayed disbursements have amplified concerns over governance and financial autonomy for devolved units.
During the meeting, IBEC resolved to establish a customer desk managed by the Council of Governors and the Controller of Budget.
This desk will handle emerging issues related to the approval process for withdrawals from the County Revenue Fund, ensuring smoother operations for county governments.
The County Revenue Fund is critical for county operations, holding all revenue raised or received on behalf of county administrations.
Delays in accessing these funds have stymied service delivery and development initiatives across the devolved units.
Further, IBEC directed the National Treasury to align budgets with gazetted devolved functions, ending the practice of national government ministries, departments, and agencies holding funds meant for county-level activities.
Specific devolved functions under scrutiny include court fines, mineral royalties, library services, and the construction of county headquarters.
President William Ruto, during the 25th IBEC meeting in December 2024, emphasized the importance of transferring pending budgets and functions to counties.
“This transfer will help improve governance, service delivery, and intergovernmental cooperation,” he told governors in Nairobi.
A 2023 report by the Intergovernmental Relations Technical Committee (IGRTC) revealed that the national government was still holding Sh272.2 billion meant for at least 10 devolved functions, contrary to the principles of devolution outlined in the Constitution.
