• Senators want counties to get more funds.
• National Treasury and National Assembly want funds allocation to counties reduced.
Image: FILE
The Senate and the National Assembly are headed for a standoff over allocation of funds to county governments.
This after the Senators rejected the reduction of the allocation to the counties by a whooping Sh9 billion.
They unanimously vote on Tuesday to amend the Division of Revenue Bill, 2019 to increase the base allocation of county governments' equitable share to Sh335.6 billion billion from Sh304 billion.
In the current financial year, the base was set at Sh314 billion, but the National Treasury said this is no longer tenable because of revenue shortfalls.
In total, the senators want the counties to receive Sh391 billion in the next 2019-20 financial year, inclusive of the conditional allocation of Sh55.4 billion.
The grants include Sh4.3 billion for level-four hospitals, Sh2 billion for rehabilitation of polytechnics and Sh900 million for compensation of user fees forgone.
The stalemate implies that the Bill will be headed for mediation, a process that may delay the passage of the Bill and land the devolved units into financial problems.
During the debate in Parliament on Tuesday, the senators vowed to ensure that the counties are well funded as provided for in the Constitution.
Mandera Senator Mohamed Mahamud who is the chairman of the Finance committee, wondered why the National Assembly and the Treasury approved only Sh310 billion as equitable share yet the National overstatement was getting a whooping Sh1.56 trillion.
“We as a Senate support that Counties get Sh335billion based on the Commission on Revenue Allocation formula. We must reject in totality the attempt by the National Assembly to reduce the allocation to the Counties,” said Mahamud.
“Counties cannot be punished for the failure of the National Treasury to meet the national revenue projections. That mandate of generating revenue squarely lies with the Treasury,” he added.
Bungoma Senator Moses Wetang'ula while seconding the motion said that the Division of Revenue Bill must be passed in an extremely qualified manner by carrying out major amendments and enable the Counties get more funds.
“Treasury cannot purport to arrogate itself the authority it does not have. Governors used to cut deals with IBEC and made cogent decisions that where there is a shortfall in the revenue collection, the national government carry the burden,” said Wetangula.
“At third reading we must amend this bill and give counties Sh335billion. The moment we reject this bill, it will be taken to mediation and we must send the best negotiators to ensure that Counties get what rightfully belongs to them. We should not simply take those who will provide quorum,” he added.
Makueni Senator Mutula Kilonzo Junior said that the County allocation cannot be reduced yet the National government released a report that the economy grew by 6.3 per cent.
“The ghost of killing devolution has begun and has begun from Treasury Buildings. Division of revenue must increase upward. It is inconsistent to have a reduction of Sh9billion for Counties yet we have not seen a reduction in the National government allocation including the Constituency Development Fund,” he said.