Nairobi — Deputy President Kithure Kindiki has urged the Controller of Budget (CoB) and the Council of Governors (CoG) to work together to resolve persistent delays in the disbursement and utilization of county funds.
Speaking at the 25th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC) held at his official residence in Karen, Kindiki emphasized the need for accountability and efficiency in county resource management.
"We have had an issue of timely disbursement of county resources," Kindiki acknowledged. "I am informed by the CS for the National Treasury that progress has been made. I am told November is still outstanding, but next week, November will be sorted out so that we try to regularize the delays."
The Deputy President noted that delays in accessing development funds are exacerbated by accountability procedures involving the Controller of Budget, leading to further bottlenecks in service delivery.
He called for a balanced approach to ensure financial oversight does not hinder the functioning of devolved units.
"Counties and county governments cannot receive money and be unable to spend it. On the other hand, we must insist that accountability is for all of us," he stated. "We must bridge the gap between the viewpoints of the CoG and CoB to help both institutions deliver on their mandates."
Kindiki outlined the broader economic challenges that have strained both national and county-level finances, including high interest rates, inflation, and a weak shilling.
He credited the Kenya Kwanza administration for stabilizing the economy, noting significant improvements over the past two years.
"Inflation has come down from a high of 9.7% in 2022 to now 2.7%, the lowest in 17 years," he said. "The exchange rate of the dollar has stabilized from highs of 165-168 to 127-129, and interest rates have dropped from over 15% to 11.25%, with indications of further decreases."
Kindiki reassured Kenyans that the worst of the macroeconomic turbulence was over, paving the way for enhanced service delivery and economic growth.
He acknowledged the sacrifices made by county governments and households during the period of economic strain and committed to strengthening devolution.
Reflecting on the political instability that marked the past year, Kindiki pointed to the collapse of the Finance Act 2024 due to unrest, which resulted in fiscal shortfalls.
He commended the mediation efforts that resolved the funding gaps, with county allocations adjusted to Sh387 billion to accommodate the revised revenue framework.
"The last one year had some political implications which affected our fiscal situation," he said. "Despite the challenges, I want to commend the spirit of understanding, collaboration, and consensus building displayed so far."
Kindiki emphasized the government's renewed focus on boosting household incomes, creating jobs, and ensuring inclusive economic growth.
He reiterated the administration's commitment to strengthening devolution and enhancing service delivery at the grassroots level.
"The pain has been significant, but I stand here today with good news that the worst is behind us," he said. "The future promises more comfort, and we remain committed to empowering citizens and ensuring prosperity for all."
The IBEC session brought together key stakeholders, including governors, the National Treasury, and other economic policymakers, to chart the way forward for sustainable resource allocation and improved service delivery across Kenya's counties.
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Some of the notable leaders present include Cabinet Secretaries John Mbadi (National Treasury), Alice Wahome (Lands), Rebecca Miano (Tourism and Wildlife), Dorcas Oduor (Attorney General), Principal Secretaries; Teresia Mbaika (Devolution), Sylvia Museiya (Wildlife), Paul Rono (Agriculture).
Others who attended the event are; Ahmed Abdullahi (Chairman, Council of Governors), Mutahi Kahiga (Vice Chairman, Council of Governors), Governors; Gideon Mung'aro (Kilifi), Issa Timamy (Lamu), Dhadho Godhana (Tana River) Nadhif Jama (Garissa), Mutula Kilonzo Jr (Makueni), Kawira Mwangaza (Meru), Abdi Ibrahim Guyo (Isiolo) and Wisley Rotich (Elgeyo Marakwet).
