FINANCIAL CRISIS

Governors to Rotich: Hold budget process till revenue impasse is resolved

County chiefs concerned with Treasury's request of approved county budgets.

In Summary

• Governors say the submission of approved county budgets cannot be executed as the Division of Revenue Bill and County Allocation of Revenue Bill were yet to be passed.

• Letter addressed to CS Rotich, all 47 governors, Controller of Budget Agnes Odhiambo, and the Commission of Revenue Allocation Chairperson Jane Kiringai.

Governors march to KICC after presenting a petition to the supreme court seeking judicial intervention in interpreting Division of Revenue Bill 2019 on July 15, 2019.
Governors march to KICC after presenting a petition to the supreme court seeking judicial intervention in interpreting Division of Revenue Bill 2019 on July 15, 2019.
Image: FAITH MUTEGI

The Council of Governors has called upon the National Treasury to halt county's Ifmis budget uploads until the passage of the controversial Division of Revenue Bill is passed.

In a letter signed by Council of Governors chairman Wycliffe Oparanya, the county chiefs said they were concerned with the Treasury's request of submission of approved county budgets for uploading on the Ifmis.

The action, he said, cannot be executed as the Division of Revenue Bill and County Allocation of Revenue Bill were yet to be passed.

 
 

"County governments cannot proceed to develop any budget to be approved by county assemblies as the two pieces of legislation are the requisite documents for development of County Budgets as emphasised in the Constitution under Article 224," Opranya said.

The document was addressed to National Treasury CS Henry Rotich.

It was copied to all 47 governors, the Controller of Budget Agnes Odhiambo, and the Commission of Revenue Allocation Chairperson Jane Kiringai.

Governors on Monday accused the National Treasury and the National Assembly of holding the counties hostage.

The county chiefs said the Treasury has continuously been ignoring the Commission of Revenue Allocation's recommendations on the sharing of revenue between the national government and the developed units.

The governors spoke outside the Supreme Court after lodging a case seeking the apex court's intervention in unlocking the current impasse on the Division of Revenue Bill 2019.

Deputy President William Ruto on Tuesday had the new Division of Revenue bill will be published on Wednesday after the national government foregoes some resources to enhance shareable revenue to county governments.

 

 This he said was after another round of consultations with stakeholders as instructed by President Uhuru Kenyatta.

National Assembly Majority leader Aden Duale blamed the CRA for the stalemate.

Duale said the commission has been making recommendations based on non-realisable revenues.

The Garissa Town MP said CRA has been promising counties unrealistic figures and negotiating on divisions.


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