Go Get Paid! MSMEs New hope as Council of Governors announce County Fund release
The Council of Governors on Friday announced the release of Sh 289.6 billion to counties in Kenya. The National Treasury had transferred Sh26.9 billion to county governments as disbursement for June in the financial year 2020/2021.
In a joint statement with the Council of Governors’, CS Ukur Yatani said, “The outstanding balance amounting to Sh 26.9 billion allocation for the month of June 2020/21 shall be released today, thus making a total of Sh 316.5 billion, as allocated to County governments in Division of Revenue Act, 2020.”
The CS noted that the funds would be used by the County government to spur economic growth an agenda that the CoG has been pushing to elevate the performance of MSMEs.
“This will enable counties to meet their important obligation to the private sector and spur economic activity at the county level as part of the ongoing and inclusive Economic Recovery Programme.”
Previously, the National Treasury had transferred Sh 43.5 billion to county governments, just to clear dues owed to the counties for April 2021, by Treasury.
In a statement, the CS insisted that counties should prioritize payment of pending bills owed to their suppliers and their statutory dues.
“The payment of these pending bills will be closely monitored and future transfers weighed against the fulfilment of this important obligation to the private sector,” Yatani said earlier.
Micro, small and medium sized enterprises have a chance to benefit from the county government enlarged kitty in development. The advantage given to these MSMEs is because most counties have been prioritizing their investments in them as a way of banking their revenue for future gains.
Counties that have continuously enjoyed growth because of the funding directed to MSMEs are Mombasa, Nairobi, Kakamega, Nakuru, Uasin Gishu, and Kisumu among the fast developing economic red zones.
For the last seven months, MSMEs have been under stress with the unpredictable economic behaviors of the pandemic.