The cash crunch in counties is worsening in the wake of the persistent standoff between the Senate and National Assembly over the Division of Revenue Bill 2019.
The devolved units may not pay July salaries having not passed the budgets for the current financial year, a process which is hinged on the crucial Bill.
Counties are also unable to pay for supplies to hospitals, fuel or service vehicles, and may soon not be able to run offices if the stalemate is not resolved.
The Kenya Medical Supplies Agency is the worst hit by virtue of being the key supplier to all county hospitals.
With the failed mediation, the Bill could be headed to unchartered waters if the comments by the Senators who took part in the process are anything to go by.
Senators said they would reject the Bill as they cannot allow themselves to be treated as escorts of the National Assembly or Executive to approve the Bill.
Makueni Senator Mutula Kilonzo said they will meeting Tuesday morning to agree on what to do with the Bill which was read for the first time last week.
The lawmaker told the Star that they will file the Hansard with the “misdirection of the Speaker of National Assembly with the Supreme Court”
“We hope the Supreme Court will re-assert their position in advisory no.2 of 2013. As far as I am concerned, our role on the division of revenue is not to escort the National Assembly or the Executive,” the Senator said.
Last Thursday, Speaker Justin Muturi ruled that the Senate’s DoRB was unconstitutional and stood withdrawn from the House.
“Many of you have amplified the point that Article 95(4)(a) is clear that the National Assembly determines the revenues between the two levels of government - national and the county government levels. Those are the only two levels that we have,” he said.
“If we are to interpret who deals with what, one must go back to the roles and functions assigned to each House in Articles 95 and 96, respectively. Therefore, in keeping with the traditions and practice, a DoRB can only originate in the National Assembly,” the Speaker said.
A day earlier, the National Assembly’s version – published after the first Bill flopped - was passed and forwarded to the Senate for consideration.
But Senator Ledama Ole Kina (Narok) argued that Speaker Muturi redrafted Article 95 of the Constitution by stating that the National Assembly decides revenue shared between the two levels of government.
“The Constitution does not say two levels of government but ‘levels of government’. The Supreme Court had defined that in the advisory no.2 of 2013. There is a difference between two levels of government.
“The National Assembly has its mandate over the national government but the latter can have other levels like say provincial administration,” Ledama said.
Homa Bay’s Moses Kajwang’ held a similar view, saying they will reject the Bill by MPs just like the latter threw out the one by Senators.
He urged the two speakers to come to agreement on the matter adding that together with the other House leaders, they stand to end the stalemate.
Kisumu Deputy Governor Mathew Owili said the situation has already affected the implementation of the universal health coverage being piloted in the county and three others.
“Everything is at a standstill. We are not able to spend any coin as our budgets have not been passed. There is nothing we are doing,” he told the Star.
“For us, it is even worse. The DoRB guides the county budgeting process; even if we sort it out at the national level, locally we will still have a problem,” Owili said.
The Senate and National Assembly are still split on who has say over the Bill which determines funding for the national and county governments.
While Senators want county governments allocated Sh335 billion, the National Assembly has proposed Sh316.5 billion as share of revenue.
Senators will file the Hansard with the Speaker’s ruling at the Supreme Court, where together with the Council of Governors, they want the apex court to assert its earlier advisory on money bills.
In 2013, the court held that, “The Division of Revenue Bill may be considered a money bill and is subject to the same procedure as a ‘Money Bill’ under Article 114, which is the purview of the National Assembly.”
