Senators aim at laws to force speedy release of county funds
Uasin Gishu Senator-elect Jackson Mandago and his Mandera counterpart Ali Roba plan to make changes in the law to impose sanctions on Treasury officials who fail to remit county resources within the set timelines in a bid to curb the accumulation of pending bills.
The two former governors have been at the brutal end of accumulated debts owed to contractors and suppliers despite the law requiring the Treasury to remit allocation to counties every 15th day of the month, in line with the County Allocation of Revenue Act.
“My foremost agenda as a Senator is to know why money allocated to counties cannot reach on time. I want to ensure that the law is changed to punish the Treasury officials who fail to release cash to pay contractors and suppliers on time,” Mandago said during the swearing-in Thursday.
“I will be exploring ways of amending the law further to eliminate the Treasury’s inordinate delay in ensuring funds get to counties by the set deadline.”
The Treasury allocated counties Sh370 billion in equitable share in the current financial year.
As of April 2022, the county pending bills stood at Sh32.96 billion, despite the law dictating payment of all goods or services being supplied in 60 days.
Treasury statistics show pending bills climbed to Sh504.7 billion at the end of the last financial year in June, a 40.39 percent jump over Sh359.5 billion the previous year, making it the biggest annual jump on record.
Governors have consistently been in a push and pull tussle with Treasury over the delayed release of funds that have resulted in unsettled obligations including payments to contractors of State projects, suppliers of goods and services as well as unremitted statutory deductions like payroll taxes, pension, and medical cover contributions.
The majority of counties continue to accumulate unpaid bills despite the Treasury repeatedly issuing circulars to State entities from 2019 to prioritize payment of debts, especially to contractors and suppliers to support economic growth and sustain jobs.
In May, Cabinet Secretary Ukur Yatani revealed the Treasury was considering drafting a legal framework that would penalize accounting officers for failure to honor verified bills for goods supplied or services rendered to State entities as a first charge.
“Government is exploring legal mechanisms to resolve the issue of pending bills,” Treasury officials wrote in the Budget Policy Statement (BPS) for 2022. “The accounting officers will be compelled to clear pending bills and failure to do so, penalties will be charged against the accounting officers.”
The Association of Public Sector General Suppliers said it will be seeking a legal interpretation on how the mounting pending bills will be paid by the national government and county authorities, which took power after the August 9 General Election.
Kenya's rising tax burden | On the money
The conversation on the ‘Tax vs GDP ratio’ has been trending for a while with many people not wondering about the pros and cons, or even further, not understanding what it even means. President William Ruto set out an ambition of increasing the tax vs GDP to 22% by the year 2027
June 5, 2024
Beating students accomodation demand | On the money
May 29, 2024
Supplementary budget 2 | On The Money
This week on the money, we shift focus to Supplementary Budget 2 ahead of the National Budget reading and tabling in parliament. With significant expenditure slashes, this supplementary budget faces sharp revenue out turns and significant considerations like disaster and emergency funds allocations. NTV's Julians Amboko sat with IC Group Economist Churchill Oduor and he started by asking his highlights of the budget.
May 8, 2024
Operationalizing the Lamu Port || On the money
Ethiopia is set to be the first landlocked country within the East African Community region to import cargo via the port of Lamu. A conventional cargo carrier is expected to dock in Lamu with over 60,000 metric tons of fertiliser to be transported to Addis Ababa through the Lamu Port-South Sudan-Ethiopia-Transport Corridor road infrastructure. With the arrival and installation of the ultra mordern equipment at the port, the facility is now capable of handling Post Panamax vessels carrying upto 20,000 containerized cargo.
April 17, 2024
National Debt Headache || #OnTheMoney
Experts are calling on alternative sovereign restructuring means and templates to cushion African countries from defaulting and for better lending terms. This has been against the back drop of Ghana's recent default in meeting its debt obligations. NTV's Julians Amboko is back from a debt conference that happened in Accra in march and shares excerpts of Business redefined show tonight, on the money.
April 10, 2024
Weak shilling hurts banks || On the money
Top Kenyan banks recorded gains worth 35.8 billion shillings when converting the 2023 financials of regional subsidiaries into Kenya shillings, reflecting the effect of a weaker currency in the period under review. This is a whooping 6.6 billion shillings less what the lenders earned in the preceding year. This week, On the money, NTV's Brian George crosses the T's and dots the i's explaining what happened, in a year that saw the Kenyan shilling record sharp volatilities. Take a look.
April 3, 2024
Nine steel manufacturers slapped with record Sh338.8M fine for market distortion
The Competition Authority of Kenya has slapped nine steel manufacturers with a record Sh338.8 million fine for market distortion and price collusion.
According to the competition watchdog, the nine companies have been penalised for artificially inflating the prices of steel products.
The companies and their fines include Corrugated Steel Ltd (Sh86.9 million), Tononoka Rolling Mills Ltd (Sh62.7 million), Devki Steel Mills Ltd (Sh46.3 million), Doshi and Hardware Ltd (Sh41.6 million), Jumbo Steel Mills (Sh33.1 million) and Accurate Steel Mills Ltd (Sh26.8 million).
Others are Nail and Steel Products Ltd (Sh22.8 million), Brollo Kenya (Sh9.4 million) and Blue Nile Wire Products Ltd (Sh9.16 million).
CAK said investigations into the steel sector commenced in August 2020 when the Authority began collecting intelligence on pricing and output restriction.
The Authority's Acting DG Adano Wario said the penalties on the firms are proportional to the offense, specifically harming consumers who are grappling with the high cost of building materials in the country.
"Cartels are conceived, executed and enforced by businesses to serve their commercial interests and to the economic harm of consumers," Wario said.
August 23, 2023
MSMEs in the medical business | Thamani
The medical business is a rapidly growing industry, and MSMEs are well-positioned to capitalize on this growth. They are nimble and adaptable, and they are able to respond quickly to changes in the market. They are also able to provide high-quality services at a competitive price.
June 20, 2023
Kamau Thugge officially assumes office as 10th governor of the CBK
The Central Bank of Kenya (CBK) has officially announced the appointment of Kamau Thugge as its tenth Governor.
Thugge takes over from former governor Patrick Njoroge, who has completed two terms, each lasting four years. With a wealth of experience from his distinguished career in international and Kenyan public service, Thugge has made significant contributions to shaping economic policies and initiatives.
Having worked at the International Monetary Fund (IMF) and held various senior roles in Kenya's National Treasury, Thugge brings valuable expertise to his new position.
Earlier today, Patrick Njoroge handed over the reins to Kamau Thugge.
June 19, 2023