Wednesday, 27 November 2019 12:20


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The Council of Governors led by the Chairman, H.E Wycliffe Ambetsa Oparanya, on Monday 11th Nov 2019 attended an Intergovernmental Budget and Economic Council (IBEC) meeting at Deputy President’s Residence. This being the 11th Session since the inception of the devolved system of Government, the meeting was chaired by the Deputy President, H.E William Samoei Ruto to have discussions on budgetary issues affecting the Country.

Critical issues on the agenda like County Assets and Liabilities, Intergovernmental Relations Technical Committee presented the report on County Assets and Liabilities from the Defunct Local Authorities. The report provides for liquidation options like; Counties to budget for the offsetting of the liabilities from their own equitable share of revenues, National Government to consider allocating conditional grants for payment of the liabilities as a strategic intervention mechanism, National Government and County Governments to consult and agree on offsetting the liabilities jointly through an agreed percentage, Government institutions to consider writing off debts owed, where applicable, current assets be used to off-set the liabilities on County to County basis or Debt swap as a liquidation option should be used to consider based on framework that determines actual values as established through an appropriately developed legal framework.

On County Pending bills, the meeting noted that that Counties had cleared Ksh.23 Billion which is 45 per cent of the total pending bills audited by the Office of the Auditor General and declared eligible. County Governments were requested to continue with clearing of pending bills as a first charge on their budget. The remaining eligible pending bills amounts to Ksh.28 Billion.

Speaking during the meeting the Deputy President Dr. William Ruto Counties are committed o settling the pending bills owed to suppliers. “I applaud the County Governments for their bold commitment to addressing the problem of pending bills; the decrease from Sh108 billion as at June 2018 to Sh34.5 billion in the end of the 2018/2019 financial year is commendable.” Said the Deputy President. Dr. William Ruto assure the County Governments the support of the National Government to ensure that their obligations are honored in time to spur the country’s economic growth.

While in the same meeting, the Chairman of the Council of Governors, H.E Wycliffe Oparanya noted, “This is one of the meetings that has unlocked some of the issues facing Counties, we are glad that through such a forum, we are able to discuss as the two levels of Government to ensure matters of National interest are well attended to.” He reiterated what the Deputy President said and added, “County Governments are committed to ensure that eligible pending bill are cleared and supplier get their due diligence.”

Additionally, during the meeting, The Chair of CRA, Dr. Jane Kiringai presented a report on issues on the Counties borrowing framework as directed by IBEC to the Joint Legal, and Loan, and Grant committee. It was agreed that Counties can borrow up to 20% of the County most

recent audited revenues as debt ceiling. Counties were called to consolidate borrowing need for the FY 2020/2021.

The meeting also resolved that the Deputy President will endeavor to call for quarterly IBEC meeting as per the calendar of events.

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