National Treasury Cabinet Secretary Mr. Henry Rotich has accused some counties of not fully utilizing funds allocated to them.
At the same time, Mr. Rotich has defended the decision to delay the disbursement of funds to counties with low absorption of funds.

Speaking on Wednesday while appearing before the Senate Committee on Finance to discuss the state of the economy and why the National Treasury was taking too long to disburse funds to the regions, the Cabinet Secretary revealed that about 10 county governments have billions lying at the Central Bank of Kenya.
Some Kshs.35.9 billion out of the Kshs.87 billion allocated to all counties has not been spent so far and only five counties out of 47 have since received their allocation for the first quarter of the 2015/16 financial year in the October disbursements.
“There are about 10 counties with more than Kshs.1 billion balance that has not been utilized.  Counties such as Makueni (Kshs.2.7 billion) and Mandera (Kshs 2.4 billion) are yet to use their funds”, said Mr. Rotich, prompting fierce inquiry from committee members on why he was concerned with what the counties had not spent from their previous allocations meant for development.
Mr. Rotich said the reason the Exchequer was taking too long to disburse the funds was the constant breakdown of the IFMIS system in some counties and the fact that trained experts recruited to run at the counties were constantly being transferred to other institutions, forcing the National Treasury to either get its experts at the headquarters or train and recruit afresh.
Meanwhile, the Cabinet Secretary has expressed optimism in the country’s economy following the strengthening of the shilling against the US dollar as well as the gradual fall in bank interest rates, saying they are enough indications that the country is on the right track, and there should be no cause for alarm.
“Kenya’s economy is fine at the moment judging by the current market situation in which we have seen Kenyan shilling gain confidence over major world currencies, particularly the US dollar in the last few days; a sign that the country is on the right track,” he said.
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