CONTROL OF COUNTY FUNDS

Sonko accuses MCAs of killing devolution with budget wrangles

In Summary

•A total of 88 out of 122 MCAs voted against Sonko’s memorandum reaching the two-thirds majority vote needed to reject the memorandum as per the law.

•This means that the budget remains at Sh37.5 billion, allocating the Nairobi Metropolitan Service Sh27.1 billion, leaving Sonko’s administration with Sh8.4 billion and Sh2 billion for the assembly.

President Kenyatta at State House, Nairobi, meets Nairobi MCAS on Saturday to discuss new arrangement whereby state takes over key functions of the capital.
PRESIDENT AND MCAS: President Kenyatta at State House, Nairobi, meets Nairobi MCAS on Saturday to discuss new arrangement whereby state takes over key functions of the capital.
Image: PSCU

Power battles over Nairobi county funds are at a peak as the Executive now accuses the assembly of killing devolution through a 'backdoor' budget.

This comes as the County Assembly on Tuesday voted to reject Governor Mike Sonko’s memorandum in his bid to amend the County‘s Financial Year 2020 -21 budget of Sh37.5 billion.

A total of 88 out of 122 MCAs voted against Sonko’s memorandum reaching the two-thirds majority vote needed to reject the memorandum as per the law.

This means that the budget remains at Sh37.5 billion, allocating the Nairobi Metropolitan Service Sh27.1 billion, leaving Sonko’s administration with Sh8.4 billion and Sh2 billion for the assembly.

Last month, Sonko declined to assent to the budget, recommending the assembly to reduce the budget from Sh37.5 billion to Sh31.6 billion in accordance with the County Fiscal Strategy Paper 2020/2021 and budget estimates that were presented by the Executive.

He  alleged the Budget was  changed overnight by State House ‘cartels’ who were behind NMS.

Sonko’s spokesman Ben Mulwa told the Star on Wednesday that despite the MCAs rejecting the memorandum, that does not cure the illegalities raised by the governor.

“Even if the Governor today signs the Bill and is gazetted, how will the Nairobi Metropolitan Service get the funds, yet the Treasury said there is no legal framework that allows county funds to be transferred to the national Government,” he said.

All county funds are disbursed from the Treasury and released to the respective County Revenue Funds of all the 47 counties.

Last month, CS for Treasury Ukur Yatani rejected Major General Mohammed Badi’s bid to release cash to pay staff seconded to NMS noting that are no legal provisions that funds can be released to the office.

 

“The legal provisions, therefore, imply that Equitable share allocation due to the Nairobi County Government including monies for personnel emoluments shall be transferred to the NCCG Revenue Fund Account,” Ukur said.

However the County Allocation of Revenue Bill, 2020 provided a manner in which funds can be transferred from the county to the national government.

 

“The monies appropriated under subsection (1), shall be transferred to the National Government,” reads 7(3) of CARA, 2020.

However, subsection 7( 1) indicates that Where a county government has transferred functions to the National Government pursuant to Article 187 of the Constitution, the county executive in consultation with the National Government shall determine the cost of the transferred functions.

Governor Sonko while declining to assent to the bill, noted that the budget had violated article 5.2 and 5.3 of the Deed of Transfer of functions which provides that funding for each transferred function shall be determined by the national government in consultation with the county government.

“ The Governor has no problem with giving NMS funds for the transferred functions but the deed of transfer clearly states the county government needs to be consulted,” Mulwa noted.

“The MCAs have resorted to treating Nairobi to a circus and critical services risk being crippled,” he added.

The County Assembly's Budget and Appropriations committee chairperson Robert Mbatia noted that the rejection of the  memorandum should not be misconstrued as a battle between the governor and the Assembly.

“The rejection of the governor's memorandum is a win for Nairobi residents who are in need of service delivery,” he said.

The Governor's spokesman further explained that the MCAs have passed a budget that essentially ‘kills’ the County Government of Nairobi and denies the residents of Nairobi an opportunity to enjoy services offered by the County Government as other Kenyans.

“The MCAs have also let down the people of Nairobi because the definition of a county government in the constitution comprises of the county executive and county assembly .t is very weird that the assembly is allocating money meant for themselves as the county government to an entity that does not exist in law,” Mulwa said.

It is now a wait and see situation as Nairobi residents, NMS and the County Assembly as well waits for Sonko’s move in relation to the budget.

Once County Assembly Speaker Benson Mutura forwards the bill to Sonko has seven days to assent to it.

However, at this stage, whether he assents to it or not after seven days the bill will become law.

Nairobi City County Assembly Standing Order 145 says that if the County Assembly passes a bill a second time without amendments or with by a vote supported by two-thirds of MCAS, the speaker shall within seven days resubmit the Bill to the Governor and shall within seven days assent to the bill.

“If the Governor does not assent to a Bill or refer it back within the period referred to under this section, the Bill shall be taken to have been assented to on the expiry of that period,” read the Standing Orders in part.

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