Are the Taps Dry? Cash Flow in Kenya and the Implications for National and County Spending
Publication Type: Papers
August 2017 | by John Kinuthia, IBP Kenya
In the first quarter of the 2015/16 fiscal year, Kenya’s national government had a cash crunch that was covered extensively by the media, yet the reasons for the liquidity problems were never clarified. As the crisis eased media interest waned, but questions remained about the national government’s ability to manage cash flow properly in order to avoid service disruptions.
Additionally, numerous questions have been raised in recent years regarding the flow of funds from the national government to counties, who have frequently expressed concerns about delays in disbursements.
This Budget Brief presents an analysis of the available data on Kenya’s national government cash flow, focusing on cash inflows over the last six years and how that money has been disbursed across government agencies at the national and county levels.