Treasury CS Henry Rotich has admitted that the government has run out of cash to complete some of its projects.
Rotich stated that the shortfall in revenue collection was caused by long election period and drought.
The Treasury CS made the admission on Wednesday when appearing before the Senate's Finance Committee.
Rotich submitted a petition to Parliament seeking to has petitioned to reduce county allocations by between Sh15 billion and Sh18 billion in the next financial year.
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The devolved units received Sh302 billion in the 2017/18 financial year. If Treasury's petition is adopted, the counties will get between Sh284billion and 287 billion.
"There are a lot of things that even the President wanted to do after elections but the money is not forthcoming and we have had to review the projects and put them on hold. Nothing stops counties from doing the same," the CS stated.
The development came even as international rating agency Moody's assigned Tanzania a higher credit ranking than Kenya.