The National Treasury has disbursed Ksh 52.2 billion to Kenya’s 47 County Governments as part of their equitable share of the revenue for months of July and August 2020
This is after the government enacted the County Revenue Allocation (CRA) Bill that initiated the release of funds.
“The backdating of the payments to July 2020 could potentially jerk up overall liquidity in October. Increased T-bill and bond maturities should also lend support,” says NCBA Bank Analysts.
“Stronger payments into the financial system may further support the performance reducing pressure on yields.”
According to NCBA Analysts, for instance, the overnight rate has gradually declined to 2.05% from 2.78% at the start of last
Week (5 Oct.). “Reflecting the general increase in liquidity, demand for T-bills improved, breaking a 9-week under-subscription cycle. For the Ksh 24.00 billion on offer the Central Bank of Kenya received Ksh 26.40 billion in bids of which Ksh 24.79 billion was accepted.”
Through a press statement on Tuesday, Treasury Cabinet Secretary Ukur Yattani urged the counties to give priority to the settlement of pending bills.
Nairobi will receive the highest amount – Ksh3.95 billion for July, August, and September out of the annual allocation of Ksh15.91 billion.
Turkana Ksh2.63 billion for the three months out of the annual allocation of Ksh10.53 billion, Nakuru will receive Ksh2.61 billion out of the total allocation of Ksh 10.47 billion.
Mandera will get Ksh2.55 for the three-month period out of an annual allocation of Ksh10.22 billion.
The money will be released to the individual County Revenue Funds (CFR) accounts held at the Central Bank of Kenya.