Treasury sh5bn avoids fallout with the World Bank


New

Treasury sh5bn avoids fallout with the World Bank


National Treasury building. PHOTO FILE | NMG

BDgeneric_logo

summary

  • The Treasury avoided fallout with the World Bank due to the delay in releasing cash to help counties improve accounting, auditing and procurement systems.
  • Cabinet Secretary Ukur Yatani has allocated 4.99 billion shillings for the days of Kenya’s Decentralization Support Program until the end of the fiscal year before the September 2021 deadline.

The Treasury has anticipated the fallout with the World Bank due to the delay in releasing liquidity to help counties improve accounting, auditing and procurement systems.

Cabinet Secretary Ukur Yatani has allocated Sh4.99 billion to Kenya’s decentralization support program until the end of the fiscal year before the September 2021 deadline, which would have seen the World Bank withdraw its share of funds.

The multilateral lender had disbursed 4.6 billion shillings for the second phase of the project a year ago at a time when the country was facing cash flow problems induced by Covid that affected the budget of the non-priority program.

The Ministry of Devolution recently told the Committee on Budget and Credit that Kenya risks losing World Bank funding if the Treasury does not release its share of money for the program.

“The World Bank disbursed 4.6 billion shillings for the Level II Kenya Devolution Support Program in May 2020. By this time, the County Income Allocation Act (CARA) had already been prepared. and the amount was therefore not taken into account in the CARA. », Wrote Tuesday the parliamentary committee, chaired by Kanini Kega (Kieni), in its report on the budget 2021/22.

CARA is the legal framework that provides for the release of cash such as equitably shareable income, national government as well as other grants and loans.

The amount disbursed last year by the World Bank was more than triple the 1.4 billion shillings it released under the Kenya Devolution Support Program (KDSP Level I) during the fiscal year. 2019/2020.

The program, which began in April 2015 and is expected to cost more than $ 200 million (21.6 billion shillings) upon completion, aims to help improve their ability to plan, deliver and monitor the delivery of public services.

Strengthening public financial management systems is partly seen as a way to improve service delivery in counties by ensuring that public money is spent properly and accounted for.

Leave a Reply

Your email address will not be published. Required fields are marked *