Deputy President Rigathi Gachagua has cautioned governors against joining those who are criticizing the Finance Bill 2023. He emphasized that the bill aims to generate revenue that will be allocated to the counties for various development projects. Speaking after the 20th Intergovernmental Budget and Economic Council (IBEC) meeting in Karen on Monday, Gachagua urged the county bosses to align themselves with the national government on revenue collection, highlighting that the state will not resort to borrowing for expenses.
Gachagua stressed the importance of collecting sufficient revenue, as the governors would face challenges if revenue falls short. He urged the governors to exercise caution and refrain from joining the critics of the Finance Bill. These statements by Gachagua followed his previous warning to MPs who intend to vote against the bill.
In his remarks on Sunday, Gachagua stated that MPs opposing the Finance Bill should not expect development in their respective areas. He criticized certain leaders for urging Kenyans to reject the bill while simultaneously expecting government services.
Addressing the issue of delayed disbursement of county funds, Gachagua disclosed that during the IBEC meeting, it was decided that governors would receive April’s disbursement within the week. He further announced that the arrears for May would be released by June 19. Gachagua highlighted that the Treasury is facing financial strains, which he discussed with the governors who expressed understanding.
According to Gachagua, the counties have received a total of Sh305 billion, with outstanding arrears amounting to Sh94 billion for the three-month period until June. The budget for the Financial Year 2023/24 is scheduled to be presented on June 15.