The Senate Standing Committee on Finance and Budget has adopted a report on the County Governments Equitable Share Cash Disbursement Schedule for the financial year 2023/24.

The equitable share cash disbursement schedule for financial year 2023/2024 was tabled in the Senate on Tuesday 8th July, 2023 and committed to the Standing Committee on Finance and Budget for processing and recommendations. 

According to Section 17 (7) of the Public Finance Management Act, 2012, the National Treasury in consultation with the Intergovernmental Budget and Economic Council is required to prepare a schedule detailing the planned disbursement of monies to county governments every month in a given financial year.

During deliberations, the committee noted existence of a disconnect between the legal timelines for approval of Cash disbursement schedules and the approval of the County Allocation of Revenue Bill occasioned by delays in the approval of County Allocation of Revenue Bill which informs the preparation of the Cash disbursement schedule.

The committee also noted the National Treasury`s failure to adhere to approved Cash Disbursement Schedule, causing delayed disbursements to counties thus hindering proper financing and employee compensation payments.

According to the report adopted by the committee, each county is expected to receive a monthly disbursement on the 15th of every month over the period that will run from the 15th July, 2023 to 15th June, 2024 with the monthly disbursement set at an average of 8 percent of the total allocation. 

The month of April, 2024 has the highest proportion at 9 percent of the total allocation.

The average monthly remittances to counties will be Ksh.32.1billion. 

That will however be in an alternating basis where Counties will receive Ksh.30.8 billion in one month and Ksh. 32.8 billion in the following month with the exception of April 2024 when counties will receive the highest monthly transfer which is of Ksh. 34.7 billion.

On quarterly basis, in the first quarter of the financial year 2023/24, Counties will receive Ksh.96.4 billion, second quarter Ksh.94.3 billion, third quarter Ksh.96.4 and fourth quarter 98.3 billion.

At the end of financial year 2023/2024, Counties are expected to receive a total of 385,424,616,062.

As per the disbursement schedule adopted by the Finance Committee, Counties are expected to receive 32,761,092,365 in July, 30,833,969,285 in August, 32,761,092,365 in September, 30,833,969,285 in October, 32,761,092,365 in November and 30,833,969,285 in December 2023.

In 2024, counties will receive 32,761,092,365 in the month of January, 32,761,092,365 in February, 30,833,969,285 in March and 34,688,215,446 in April.

Further, they will receive 32,761,092,365 and 30,833,969,285 in the months of May and June respectively with all the disbursements to the county coffers expected to be made by the National Treasury on the 15th of every month.

During the Wednesday`s meeting, the committee gave its recommendation compelling the National Treasury to strictly adhere to the approved cash disbursement schedule as required by Article 219 of the Constitution to avoid affecting operations in Counties.

In addition, the report recommended for the amendment of the Public Finance Management Act, 2012 to align timelines for preparation and approval of Cash disbursement schedules to the timelines provided for approval of the County Allocation of Revenue Bill.

Members present were Mandera County Senator Ali Roba (Chairperson), Sen. Tabitha Mutinda (Vice Chairperson), Sen. Joyce Korir, Mombasa County Senator Mohamed Faki, Kisii County Senator Richard Onyonka and Kakamega County Senator Dr. Boni Khalwale.