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However, the senators adjusted the allocation to Sh2.52 trillion to the national government and Sh415 billion to the counties
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During a heated debate in the National Assembly yesterday, the MPs struck and rejected the Senate amendment
Image: LEAH MUKANGAI
A cash crisis looms in the counties after the Senate and the National Assembly clashed over cash allocation to devolved units.
This even as governors protested a move by the national assembly to reject Senate's allocation of Sh415 billion to counties in the next financial year.
Senate had amended the Division of Revenue Bill, 2024 to increase the allocation to Sh415 billion from Sh391 billion passed by the National Assembly.
In the Bill, the National Assembly allocated Sh2.54 trillion to the national government and Sh391 billion to the devolved units.
However, the senators adjusted the allocation to Sh2.52 trillion to the national government and Sh415 billion to the counties.
During a heated debate in the National Assembly yesterday, the MPs struck and rejected the Senate amendment.
“I urge this house to agree with BAC (Budget and Appropriations Committee) that we reject the senate amendment," committee chairman Ndindi Nyoro said.
Majority Leader Kimani Ichung'wa concurred with the committee, adding that several votes especially the National Government Constituency Development Fund (NG-CDF) risked suffering massive cuts.
“If we were to agree with the senate this afternoon, something else must give way. If we give Sh10 billion from road maintenance, you will sacrifice that money to your governors hoping that they will build the same roads," Ichung'wa said.
However, Azimio members agreed with the senators to give the counties enhanced allocation.
They were however, overwhelmed by their Kenya Kwanza counterparts.
"I agree with the Senate in its proposed amendments to the Division of Revenue Bill. What the Senate amendments are saying are very simple. Is that in our own calculations, the counties need much more than what you have allocated them," Minority Leader Opiyo Wandayi.
The clash over the revenue allocation has triggered a standoff that now threatens to cause a cash crisis in the counties.
The speakers of the two houses have since referred the matter to a mediation committee, a process that will delay the passage of the crucial bill.
The law provides for the formation of a mediation committee consisting of an equal number of members from either House of Parliament to strike a consensus.
The High Court, in 2020, ruled that the Division of Revenue Bill must be approved by Parliament before tabling of the Budget Estimates and reading of budget speech by the Treasury Cabinet Secretary.
This implies that the counties will not be able to get exchequer releases until the Bill is approved by Parliament.
On Tuesday, governors protested the move by the national assembly to deny the counties enhanced allocation.
Council of Governors, through its Finance and Economic Planning Committee chairman Fernandes Barasa, accused the lawmakers for ‘fighting’ devolution.
“I find fault with the National Assembly Budget Committee for rejecting Senators’ proposal to increase counties allocation to Sh415 billion. Counties have medical equipment to be serviced and other functions which have been devolved and not funded,” he said.
Barasa questioned the rationale behind the bid’s rejection, saying counties should be well funded for devolution to be successful.
“In the previous financial year, the national government devolved more roles to the counties making it strenuous for counties to successfully run critical functions like health and agriculture,” he said.