John Mbadi the Cabinet Secretary for National Treasury and Economic Planning.
Senators want Treasury Cabinet Secretary John Mbadi summoned over more than Sh48 billion in “idle” county funds lying dormant at the Central Bank of Kenya (CBK).
The development comes at a time when some devolved units are struggling to pay staff salaries and are owing contractors and suppliers billions in pending bills.
The counties' pending bills portfolio has hit over Sh194 billion, as of January 2025, with Sh149.5 billion related to recurrent expenditure while Sh44.51 is development-related.
Consequently, the lawmakers now want CS Mbadi to appear before the House to explain why the billions are lying idle at the County Revenue Fund (CRF) account at the CBK.
Shift blame
Last year, the Treasury boss blamed county bosses over the idle billions, appealing to the governors to sort out issues with the Controller of Budget in order to ensure the billions do not continue lying idle in the account.
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Senate Deputy Speaker Kathuri Murungi said that Mr Mbadi should now appear before the House to explain the state of affairs, amid concerns over persistent underutilisation of development funds by counties.
“I advise that we put this question to the CS because we could get answers faster than a statement. I request that you go that route because senators are interested to know the amount held in the Treasury yet there are many challenges in the counties,” said the Meru Senator.
Mr Murungi’s sentiments comes after nominated Senator Esther Okenyuri wanted the Finance and Budget committee to commence investigations into the huge unspent county funds held in the CRF account.
The senator wanted the committee to explain to inquire why about Sh48.5 billion is lying dormant in the CRF account at the CBK as reported by the National Treasury despite the financial struggles by many county governments.
Ms Okenyuri said the committee should provide a report of the monies held in the recurrent accounts for counties by the CBK as of January 2025, indicating the amount meant for each county, even as many county employees are facing delayed salaries.
“The committee should state the economic implication occasioned by failure of the said counties to absorb the funds given that most of them are earmarked for development,” said Senator Okenyuri.
In October last year, CS Mbadi said that once the money is transferred to the CRF account, it should go to counties to pay for salaries and as well as go into development expenditure.
He called for a smooth absorption of the billions “because the last thing you would want to see are balances accumulating in idle accounts as it adds no value to the economy and slows down economic growth”.
According to data released by the Treasury in December 2024, Kisii and Nakuru Counties led some 18 devolved units with billions of shillings lying idle in their accounts despite cash crunch facing most county governments.
At the time, some Sh48.5 billion remained untouched at the CF account, rising by Sh6 billion from October same year.
Interestingly, some Sh1.9 billion were in the recurrent account at a time when some county government staff had gone for months without salaries and wages.
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On the other hand, Sh434.7 million for development expenditure had not been accessed by counties despite some 10 counties failing to spend even a coin on development in the last three months.
According to the data, Kisii had Sh3.46 billion lying idle at CBK with some Sh6.8 million in the development account while Nakuru County had Sh2.78 billion warming the CRF account.
Governor Johnson Sakaja’s Nairobi City County had some Sh1.82 billion with Sh108.8 million warming the development account.
Kwale (Sh1.63 billion), Turkana (Sh1.55 billion), Kilifi (Sh1.54 billion), Uasin Gishu County with Sh1.49 billion, Mandera (Sh1.39 billion), West Pokot (Sh1.34 billion), Narok (Sh1.24 billion), and Tana River with Sh1.23 billion.
Wajir (Sh1.18 billion), Kakamega (Sh1.16 billion), Kiambu (Sh1.13 billion), Meru (Sh1.13 billion), Kitui (Sh1.1 billion), and Nyeri (Sh1 billion), same to Baringo.
On the other hand, Bungoma, Garissa, Machakos, Makueni, Migori, Nandi and Siaya had more than Sh900 million yet to be accessed.
