Lead image for Why governors’ bid to force Treasury to release county funds monthly failed.
The High Court has struck out a seven-year-old case by governors seeking to compel the National Treasury to release counties’ equitable share of national revenue every month.
The Council of Governors (CoG) wanted the Treasury compelled to release counties’ share of nationally raised revenue by the 15th of every month to prevent cash flow delays from disrupting operations and the delivery of essential public services.
However, Justice Roselyne Aburili ruled that the Council had not exhausted the statutory mechanisms for resolving disputes between the national and county governments before moving to court.
“There is no evidence that the petitioner attempted to explore any of the dispute resolution mechanisms set forth under Sections 30–34 of the Intergovernmental Relations Act or to demonstrate that the statutory mechanisms were inadequate,” Justice Aburili said.
The legal dispute began after the Treasury delayed disbursements to counties, crippling operations in the devolved units, derailing budgeted development projects and threatening essential public services.
Also Read: Counties to get Sh428bn after MPs, Senators end deadlock on crucial Bill
The Council filed the petition in December 2019.
It asked the court to declare that the Treasury and the Controller of Budget must release counties’ equitable share by the 15th of every month. It also sought an order barring the Treasury from withholding more than half of a county’s allocation even in cases of a serious or persistent material breach.