Treasury Cabinet Secretary John Mbadi has assured county government workers that their June salaries will be paid on time despite concerns over delayed Exchequer releases to devolved units.
Appearing before the Senate Plenary on Wednesday, Mbadi said the National Treasury would continue prioritising county allocations, maintaining that there was no intention to delay funding to county governments.
His remarks came after Nairobi Senator Edwin Sifuna raised concerns over persistent delays in disbursing funds to counties despite earlier commitments made by the Treasury during Public Accounts Committee meetings.
CS Mbadi explains delayed county funding. Photo: Courtesy.
Mbadi acknowledged that the government is experiencing cash flow constraints but explained that Exchequer releases depend on the availability of funds raised through tax collections and borrowing.
He maintained that the delays would not prevent counties from meeting their June salary obligations once the funds are released.
The Cabinet Secretary also disclosed that Treasury operations have been affected by delays in securing external financing, particularly a major loan facility from the World Bank that is expected before the close of the current financial year.
According to Mbadi, the National Treasury is expecting to receive Ksh96.9 billion under the World Bank’s Development Policy Operations (DPO) programme before June 30.
The funds were delayed as Kenya worked to meet a series of policy and governance reforms required by the lender.
These included regulations on identifying beneficiaries of social protection programmes, the issuance of sustainability-linked bonds and measures to support the country’s forest conservation targets.
Reports indicate that the World Bank is now satisfied with Kenya’s progress in implementing the agreed reforms, paving the way for the release of the funds before the end of the financial year.
Once disbursed, the funds are expected to ease pressure on the National Treasury, facilitate county allocations and provide additional resources for salaries and other government expenditures ahead of the 2026/27 financial year.
