Salaries delayed as cash crunch bites in counties

Thousands of county government workers are yet to receive their February salaries as devolved governments grapple with cash flow problems which have also crippled services and stalled projects.

At least four counties have written regret letters to their staff, notifying them of delayed pay. The counties have cited a delay in disbursement of funds from the Treasury.

Kericho, Taita-Taveta, Kilifi and Busia county governments have, in internal memos to staff, asked for more time to find money for their pay.

The counties say the salaries would be paid once funds are released by the national government.

PATIENCE

Treasury Cabinet Secretary Henry Rotich, who had last week hinted that the government did not have funds, except for the Sh200 billion Eurobond successfully floated last month, has advised ministries and government departments to stop wastage.

In Kilifi, county secretary Benjamin Chilumo asked for patience from employees, saying they could get their money within a week.

“This is to let you know that payment of February 2018 salaries shall delay. This has been occasioned by the delay in remittance of the December equitable share of funds for Kilifi by the Treasury,” he said.

OVERDRAFTS

Kericho County secretary Joel Bett, in a memo to staff, said: “This is to notify you that there shall be a delay in the payment of salaries for February due to the delay of disbursements by the Exchequer.”

Previously, governors resorted to bank overdrafts for salaries, a decision criticised by the Treasury. Mr Rotich instead advised the county bosses to seek permission from the Treasury before going for the loans.

The delays came even as governors said counties were struggling to meet their obligations following delays by the Treasury to release the funds, three months to the end of this financial year.

LOWEST AMOUNT

Council of Governors chairman Josphat Nanok said Treasury had only advanced 33 per cent of the expected 75 per cent and its plan to starve counties of Sh18 billion would ground services.

“Counties are facing a financial crisis and the little disbursement we have received has been utilised as salaries and other recurrent expenditure,” Mr Nanok said.

Only Nairobi, Narok and Trans-Nzoia counties have received more than half their total equitable share at Sh8.7 billion, Sh3.2 billion and Sh2.8 billion respectively.

Another 20 counties have received below 25 per cent of their allocation.

Those that have received the lowest amounts are Elegeyo-Marakwet at Sh833.5 million and Nyandarua, Lamu and West-Pokot at Sh1 billion each.

SUPPLIERS

Counties also owe suppliers and national government agencies goods and services valued at Sh99 billion.

Key services in hospitals like the purchase of drugs, completion of roads, markets, street lighting and payment of bills are some of the worst affected, according to governors who spoke to the Sunday Nation.

Some county leaders have asked for help from donors and NGOs to help run health centres.

Mr Rotich has proposed slashing of Sh18 billion to counties, leaving them with Sh284 billion to run their activities from the initially approved Sh302 billion shareable revenue.

ILLEGAL

His proposal is, however, subject to Parliament approval.

Mr Nanok on Friday urged Senate to reject the amendment, adding that it was illegal.

According to the law, the disbursement of funds to counties should be made at the beginning of every month or not later than the 15th day from the commencement of the quarter.