Counties in hassle as virus destroys economies




The Covid-19 pandemic will influence negatively on finances implementation for the counties within the final quarter of the 2019/20 monetary 12 months, which ended on Tuesday, a report by Controller of Finances Margaret Nyakang’o says.

The report, which presents the counties’ finances efficiency within the first 9 months of the present monetary 12 months (July 2019 to March 2020), says measures put in place to include coronavirus will decelerate financial progress, which can have a ripple impact on improvement.

Kenya’s first Covid-19 optimistic case was reported on March 13.

Already, counties have reviewed their spending plans within the 2020/21 monetary 12 months on account of the pandemic, with most revising their budgets to reprioritise spending in direction of mitigating the unfavourable financial impacts of Covid-19.

“Given the disruptions occasioned by the actions taken to include the unfold of the Covid-19 illness, it’s clear that the measures will negatively influence on all county governments in implementation of the FY 2019/20 finances.

“Subsequently, there’s want for steady monitoring of this influence by county treasuries and departments of well being. Counties ought to develop frameworks for motion aimed toward saving lives, defending households, companies, and the financial system,” the finances implementation assessment report for the primary 9 months of 2019/20 monetary 12 months signifies.


Within the doc, Dr Nyakang’o warns that the tempo of the illness’s disruption is prone to speed up within the months forward because the ailments spreads to extra counties.

“Counties ought to develop frameworks for motion aimed toward saving lives, defending households, companies, and the financial system,” she mentioned.

The report’s findings present some counties absorbed lower than 50 p.c of their improvement budgets, that means taxpayers had been being denied companies regardless of the supply of fund.

Growth spending is vital to constructing infrastructure like roads and sewerage and placing cash in personal palms by demand for uncooked supplies, which finally creates new jobs.

Nairobi, Samburu and Nyandarua had the bottom absorption of improvement finances at 11.1 per cent, 6 per cent, and 4.1 per cent respectively. Different counties with low absorption of improvement funds are Nakuru (14.three p.c), Taita Taveta(12.7 p.c) and Migori (15.eight p.c).

High performers had been Murang’a, Tana River, and Marsabit at 60.2 per cent, 45.6 per cent, and 43.5 per cent respectively.

In Murang’a, Sh2 billion out of their Sh3 billion allocation was used within the stocking of pharmacies, development of roads, college feeding programmes and a variety of agricultural tasks.



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