CASH STALEMATE

Counties will soon get money, Speakers say

Muturi and Lusaka say Parliament will amend finance law if ongoing mediation fails

In Summary

• Speakers express optimism impasse on Division of Revenue Bill 2019 will be resolved

• Stalemate between Senate and National Assembly has left counties without cash

National Assembly Speaker Justin Muturi.
National Assembly Speaker Justin Muturi.
Image: FILE

National Assembly Speaker Justin Muturi and his Senate counterpart Kenneth Lusaka have said counties will soon get funds irrespective of the outcome of the ongoing mediation.

The speakers expressed optimism the talks between Senators and MPs to unlock the impasse over the Division of Revenue Bill 2019 will be successful.

However, should the talks hit a dead end Parliament will convene and amend the Public Finance Management Act 2012 to allow counties access up to 50 per cent of the proposed allocation.

 

“The mediation committee is meeting (Tuesday) and we have also held our meetings with governors and Treasury. So, we hope there will be light at the end of the tunnel. This stalemate should not continue anymore,” Muturi said.

He said counties should be allowed to access a percentage of the funds just like the National Government in case of a stalemate like one currently experienced in Parliament.

“We are going to ask the National Assembly to pass a vote on account so that funds can be made available to the counties. Why should projects and people in our counties suffer?” he posed.

Both Houses are currently on a month-long recess but Muturi hinted at calling for a special sitting to amend the law to give the devolved units the funds if mediation collapses.

The Speakers spoke during the launch of a five-year Strategic Plan of the Office of the Controller of Budget in Nairobi on Tuesday.

Parliament is split over the crucial bill that divides the money between the National Government and counties.

Negotiations kicked off on a wrong footing on Tuesday as the legislators engaged in a shouting match and table banging. The Senators and MPs clashed bitterly over the amount that should be allocated to the devolved units in the current financial year.

 

While the Senate wants the counties to get Sh335 billion, National Assembly insists on Sh316 billion.

The dispute has landed most counties in a financial crisis with some being unable to pay their workers and suppliers.

Muturi appeared to blame the National Treasury and Commission on Revenue Allocation for the stalemate after they sent two contradictory figures to Parliament for approval.

CRA had recommended Sh335 billion should be sent to counties while the National Treasury proposed Sh310 billion.

Muturi said it was a grave mistake to subject the crucial bill to mediation.

“CRA and Treasury should be putting their figures together such that when they bring them to Parliament the bill just sails through. You should bring to Parliament actual figures,” he said.

Lusaka said the lawmakers, just like any other Kenyan, are sensitive to the plight of the counties and will do whatever it takes to resolve the dispute.

Governors Alfred Mutua (Machakos) and Wilber Otichillo (Vihiga) said the stalemate had paralysed operations in the counties.

“There is hardly anything happening in counties in terms of development. The counties are basically at a standstill. They have been shut down,” Mutua said.


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