• Ruling allows counties to access 15 per cent of shareable national revenue as spelled in the Constitution
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The National Assembly has asked county governments to seek alternative means allowed by the Constitution to raise cash following the stalemate on the Division of Revenue Bill, 2019.
The House on Thursday said county governments have recourse through the revenue they have generated and deposited in their respective County Revenue Funds.
MPs also say the devolved units can re-appropriate and utilise revenue of the previous years, monies which are retained in the County Revenue Fund at the close of the preceding financial year.
Deputy Speaker Moses Cheboi said this in a ruling which held that the Senate’s Division of Revenue Bill, 2019, was not properly tabled in the National Assembly.
He said the Constitution provides avenues through which the current delay in the enactment of the Division of Revenue Bill can be mitigated.
The presiding speaker, on behalf of Justin Muturi, said counties can access fifteen percent of all national revenue as spelled in Article 203(2) of the Constitution.
The provision guarantees county governments an equitable allocation of a minimum of fifteen percent of all national revenue based on the most recent audited accounts.
“This amount ought to be readily available to County Governments as it is already charged, allocated and granted by the Constitution,” Cheboi said in the communication to the House yesterday.
He said the allocation ought not to be subjected to the bicameral legislative process between the two Houses of Parliament.
Cheboi said the provision is a relief in the event of a protracted disagreement, mediation, and even defeat of the DoRB as is the case today.
“Since this is a direct charge by the Constitution, Article 206(2)(c) empowers the Controller of Budget to authorise the withdrawal of this amount from the Consolidated Fund.”
However, the three options, which comes as a relief to the cash-strapped counties, would require amendments to the Public Finance Management Act.
This will be in order to provide a comprehensive mechanism to enable county governments to access preliminary funding.
“The measure will ensure that county governments sustain their operations in the event of any future protracted enactment of the Division of Revenue Bill,” Cheboi said.
The Houses of Parliament have been embroiled in a tussle which saw the Division of Revenue Bill, 2019 lost at the mediation stage.
A new bill published by the National Assembly was equally amended by the Senate after the same was presented to the said House, subjecting it to uncertainties.
The Senate had presented their version to the National Assembly, which was the factor of the yesterday’s ruling.
With the Senate sending back the National Assembly’s revenue bill to MPs after amending the allocation to Sh335 billion which MPs had rejected, the standoff is likely to persist, hence, subject counties to a worse cashflow crisis.
The National Assembly has maintained that the Constitution restricts it as originator of money bills, for which the DoRB is one. the House proposed the share to be Sh316.5 billion.
County cash woes are headed for the worse in the wake of Parliamentarians proceeding for a month long recess which started yesterday.
Leader of Majority Aden Duale said the House business committee will consider the possibility of calling for a special sitting should the fresh bill be approved after a mediation process.
The National Assembly maintained that the Division of Revenue Bill (Senate Bill No. 13 of 2019) offends not only the spirit of the Constitution but also the customs and traditions of the House.
The Budget and Appropriations Committee have called for mediation.