Nairobi — Deputy President Rigathi Gachagua has urged county governments and state-run agencies to expedite the payment of pending bills for the 2022/23 financial year.
During the 22nd Ordinary Session of the Intergovernmental Budget and Economic Council on Tuesday, Gachagua emphasized the importance of timely fund disbursement for economic growth and assured the government's commitment to settling pending bills promptly.
"We should not be having pending bills for the last financial year. Prompt payments for goods and services release funds to our business people and spur economic growth, especially for the Hustler nation," Gachagua told governors, stressing the significance of resolving the issue.
The Council of Governors has been complaining that Treasury has yet to release funds amounting to Sh81 billion, covering arrears from November 2023 to January 19, 2024.
This outstanding amount includes Sh17.4 billion owed to 24 counties since November, Sh30 billion owed to 47 counties since December 2023, and Sh32 billion owed to 47 counties for January 2024.
Gachagua further stressed the urgency of addressing the escalating wage bill in the country, expressing his concerns.
He also singled out corruption as a significant obstacle to the government's agenda implementation and called for collective efforts to tame the menace.
"Corruption is a threat to both levels of government. Let us work collectively to put in place control measures to monitor the use of public funds for procurement and expenditure to be within the law," Gachagua emphasized the need for transparency and accountability in public spending.
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The Deputy President commended governors across the country for their support in implementing government projects, such as the affordable housing program, Universal Health Care programs, and the subsidized fertilizer rollout to farmers.
He reiterated the commitment of President William Ruto's administration to strengthen key value chains, including tea, coffee, dairy, livestock, potato, and sugar, which are vital for the potential revival of the economy.
Gachagua emphasized the need for collaboration between the national government and devolved units to achieve the Bottom-Up agenda.
"The President and I remain committed to fostering harmonious and consultative intergovernmental relations and co-operation at both levels of government in pursuit of implementation of the Kenya Kwanza's administration's agenda," he said.
