Inside Politics

You will feel the pinch if Finance Bill flops, Gachagua warns governors

Tuesday, June 6th, 2023 05:40 | By
Deputy President Rigathi Gachagua (centre) addresses the media after chairing an Intergovernmental Budget Economic Council meeting at his Karen residence yesterday. He was accompanied by several governors. PD/ John Ochieng
Deputy President Rigathi Gachagua (centre) addresses the media after chairing an Intergovernmental Budget Economic Council meeting at his Karen residence yesterday. He was accompanied by several governors. PD/ John Ochieng

Governors have an obligation to back the Finance Bill 2023 if they expect the national government to disburse monies allocated to the counties, Deputy President Rigathi Gachagua has said.

The DP said he told the governors that they must be cautious not to join efforts to defeat the Bill.

“We are sailing in the same boat and if you fail to support the Bill we will not have money to support you,” Gachagua warned.

Addressing a press conference after chairing the Inter-Governmental Budget Economic Council (IBEC) at his Karen residence, the DP said the Ruto administration had made a decision not to pay salaries and support the recurrent expenditure through borrowing since it is not sustainable adding the exchequer will raise money from revenues raised locally.

He, however, said the National Treasury will this week release money owed to counties for the month of April.

“After lengthy deliberations, we have agreed that monies owed for the month of April will be disbursed by the end of this week. By June 19 the money owed for the month of June will be disbursed,” said the DP.

He added that the National Treasury had given a commitment with no guarantees that it will do everything possible to try to raise the money for the month of June and if it is not possible will ask the governors to bear with the situation.

Governors led by chairperson of the council Anne Waiguru (Kirinyaga), Treasury Cabinet Secretary Njuguna Ndung’u among other representatives of various State agencies attended the meeting.

Kakamega Governor Fernandes Barasa, who chairs the Finance Committee in CoG, had expressed concern over the delayed disbursement of funds to the counties.

“Before the end of this month, IFMIS will be closed, making it more difficult for governors to work. We appeal to treasury to release money owed to counties,” Barasa said.

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